{"id":305434,"date":"2021-07-22T15:16:16","date_gmt":"2021-07-22T12:16:16","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/alabama-regulators-accuse-blockfi-of-offering-unregistered-securities\/"},"modified":"2021-07-22T15:16:16","modified_gmt":"2021-07-22T12:16:16","slug":"alabama-regulators-accuse-blockfi-of-offering-unregistered-securities","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/alabama-regulators-accuse-blockfi-of-offering-unregistered-securities\/","title":{"rendered":"# Alabama regulators accuse BlockFi of offering unregistered securities"},"content":{"rendered":"

“# Alabama regulators accuse BlockFi of offering unregistered securities <\/strong>”
\n<\/p>\n

The state of Alabama has become the second state in the United States to raise concerns over BlockFi, a major cryptocurrency lending platform.<\/p>\n

The Alabama Securities Commission (ASC) has issued a show cause order to New Jersey-based company BlockFi, ASC director Joseph Borg officially announced<\/a> Wednesday.<\/p>\n

Already facing a cease and desist order from the New Jersey Bureau of Securities, BlockFi now has 28 days to provide cause why the platform should not be forced to cease and desist from selling \u201cunregistered securities\u201d in Alabama, the regulator said.<\/p>\n

According to the ASC, BlockFi’s interest-earning cryptocurrency BlockFi Interest Accounts constitute securities.\u00a0 \u201cBlockFi has raised at least $14.7 billion worldwide through the sale of these securities,\u201d the regulator claimed.<\/p>\n

The ASC alleged that BlockFi, alongside its affiliates BlockFi Lending and BlockFi Trading, have been funding its crypto lending operations and trading \u201cat least in part\u201d through funds generated from the sale of unregistered securities in violation of securities laws. The order also claimed that BlockFi has failed to disclose to investors that its BIAs are not app<\/a>roved by the ASC or any other securities regulator, despite the firm touting itself as a \u201cU.S. regulated entity.\u201d<\/p>\n

BlockFi subsequently said that the company was aware of the ASC\u2019s show cause order, assuring that it has been engaged in \u201cactive dialogues with regulators worldwide,\u201d including those in Alabama. The firm remains confident that its products are lawful and appropriate for crypto market participants, BlockFi said, adding, \u201cOur stance hasn’t changed \u2014 the BlockFI Interest Account is not a security.\u201d<\/p>\n

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[1\/1]We are aware of the show cause order issued by the Alabama Securities Commission. We have active dialogues with regulators worldwide, including those in Alabama, to share details about our products, which we believe are lawful and appropriate for crypto market participants.<\/p>\n

\u2014 BlockFi (@BlockFi) July 21, 2021<\/a><\/p><\/blockquote>\n