SEC To BlockFi In $50 Million Settlement Saga – Pay Debtors First. Summary:.
24 Jun 2023, 08:00
SEC To BlockFi In $50 Million Settlement Saga – Pay Debtors First
Summary:
BlockFi received a temporary halt on its $50 million settlement payment to the U.S. Securities and Exchange Commission, per court filings from Thursday.The bankrupt crypto lender was instructed to pay its outstanding $30 million fine after reimbursing its debtors.BlockFi was fined $50 million by the SEC and another $50 million by 32 state regulators for breaking securities laws.The U.S. Securities and Exchange Commission (SEC) has directed bankrupt crypto lender BlockFi to prioritize its obligation to repay customers over its outstanding $30 million fine to the securities watchdog, court documents filed on Thursday revealed.
BlockFi Fined For Securities ViolationsIn February 2022, the SEC fined BlockFi $50 million in penalties for offering unregistered securities services to American investors. At the same time, regulators from 32 states also accused the company of violating securities laws and issued fines amounting to $50 million.
On Thursday, the SEC filed to delay the remaining $30,284,696 fine ” in order to maximize the amount that may be distributed to investors and avoid delay in such distribution.” It’s currently unclear if state regulators will follow the SEC’s footsteps or if they will demand their respective fines regardless.