ALABAMA REGULATORS BLAME A BLOCKFI OF PROVIDING SECURITIES UNREGISTERED

BlockFi continues to reject claims by securities regulators that its Interest Accounts are unregistered securities.

state of Alabama became the second state US to raise uneasiness about BlockFi a substantial interface loans criptomonedas.

Alabama Securities Commission (ASC) issued a subpoena to the company BlockFi, originating in Innovative Jersey, was unveiled officially on Wednesday the director of the ASC, Joseph Borg.

BlockFi, already facing an order to cease and desist from the Office of Securities Innovative Jersey, currently has 28 days to argue why the interface should not be forced to cease and quit selling “unregistered securities” in Alabama, the regulator has said .

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According to the ASC, interest accounts BlockFi of criptomonedas to develop interests constitute securities. “BlockFi has raised at least $ 14.7 billion worldwide through the sale of these securities,” said the regulator.

ASC alleged that BlockFi, in conjunction with its affiliates BlockFi Lending and BlockFi Trading, was financing its crypto loan operations and trading “at least in part” through funds generated from the sale of unregistered securities in violation of securities laws. . order also confirmed that BlockFi not revealed to investors that their BIA are not approved by the ASC or any other securities regulator beyond that the company is promoting itself as a “regulated US entity.”

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Later BlockFi mentioned that the company was alert to the order of appearance of the ASC, assuming that it was involved in ” active conversations with regulators worldwide”, including those in Alabama. firm remains confident that its products are legal and appropriate for competitors in the cryptocurrency market, BlockFi has said , adding: “Our position has not changed: BlockFI’s interest account is not a security.”

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We are on the alert for the summons for a cause issued by the Alabama Securities Commission. We are in active dialogue with regulators around the globe, including those in Alabama, to communicate data about our products, which we assume is legal and appropriate for competitors in the crypto market.

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ASC said that the action occurs in the middle of a growing concern about the increasing popularity of interfaces financial decentralized as BlockFi, which are designed to provide financial services without relying on mediators central financial.

In contrast to the commonly regulated banks and brokerage firms, investor funds are not protected by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation, showing a greater danger of loss, the authority said .

ASC’s action comes two days after Novesin Jersey’s securities regulator issued a cease-and-desist order to BlockFi, blocking the interface from incorporating new users of accounts of interest in the state.

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