Bloomberg: SEC Launches Investigation Against BlockFi

The US Securities and Exchange Commission is examining the BlockFi crypto lending platform and its savingsBIA accounts that are not registered with the department.

The New Jersey firm became popular thanks toa profitable accumulative instrument that allows users to receive an annual return of up to 9.5%. Traditional savings accounts allow holders to earn as little as 0.06% per year. But unlike bank deposits, digital asset savings accounts are not insured by the federal government.

The SEC has opened investigations to determine whether BlockFi's accounts resemble securities, but has not yet formally charged them with violating the law. 

This is not BlockFi's first meeting with the authorities. New Jersey, Alabama and Texas all said in July that the platform has not registered its BlockFi or BIA interest-bearing accounts with government regulators.

Led by Chairman Gary Genslerthe agency is trying to strengthen control over the digital assets sector. His most recent high-profile prosecution involved Coinbase Global in September. The SEC forced Coinbase to abandon its lending program by threatening to sue for illegal actions. 

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