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Crypto Lender BlockFi to Pay $100 Million In Settlement with SEC, States

  • Settlement with SEC and states could come as soon as next week
  • BlockFi faces probes into selling unregistered securities
The BlockFi website.

The BlockFi website.

Photographer: Gabby Jones/Bloomberg

BlockFi Inc. is poised to pay $100 million to settle allegations from the Securities and Exchange Commission and state regulators that it illegally offered a product that pays customers high interest rates to lend out their digital tokens, according to people familiar with the matter.

The penalties, which could be announced as soon as next week, are among the toughest levied on a cryptocurrency firm amid a U.S. clampdown on the industry. The SEC and state investigators have been probing whether the accounts offered by BlockFi are akin to securities that should be registered with regulators.