Cleary Gottlieb Discusses SEC’s BlockFi Settlement and Crypto Lending

On February 14, 2022, the Securities and Exchange Commission announced a settled enforcement action charging BlockFi Lending LLC (“BlockFi”) with allegedly failing to register its interest-bearing crypto lending product as a security, failing to register itself as an investment company, and making false statements about its product.  BlockFi agreed to pay a total of $100 million in fines to the SEC and a consortium of states.[1]  As the SEC noted in the settlement Order, BlockFi publicly announced on the same day that it intended to register a new interest-bearing crypto product as a security, and the Commission provided BlockFi … Read more