Cryptocurrency platform to pay $100 million to the United States for fines

Cryptocurrency platform BlockFi has agreed to pay a $100 million fine to the United States Securities and Exchange Commission.

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BlockFi, acryptocurrency lending platform , has agreed to pay a record $100 million fine to settle lawsuits against it in the United States, the Securities and Exchange Commission (SEC) announced on Monday. The platform was sued for failing to follow registration regulations for its products by creating yield-generating crypto lending accounts, which had attracted some 600,000 investors.

The group, which did not plead guilty in this settlement but said it will abide by the rules, was also accused of “false and misleading statements for more than two years on its website about the risk level of its loan portfolio.” the SEC added in a statement. BlockFi agreed to pay $50 million to 32 US states that had filed lawsuits against it and another $50 million to the market regulator, the SEC (Securities and Exchange Commission).

At the end of 2021, the SEC had imposed, in total, 2,350 million dollars in penalties against players in the digital asset market, according to the consulting firm Cornerstone. – With information from AFP –

Path to regulation

The European Union, the United States, Russia, China and other countries have initiated a regulatory process for this format to be accepted, given that payment gateways have begun to adopt this solution. Mastercard, Visa and others already have support for cryptocurrencies.

The only “regulation” in this market is the blockchain, a shared ledger that allows for multiple certificates as backup. This control mechanism does not have an impact on the price, but on the security of who has or does not have a cryptocurrency.

Russia is trying to reach a consensus regarding the use of cryptocurrencies in that country, while the Central Bank of Russia has shown its discrepancies with this initiative.