BlockFi is completing a $ 500 million round of investments, after which its capitalization will leave $ 4.75 billion. The attraction of investments is taking place against the backdrop of increasing problems with regulators.
BlockFi allows investors to open a BlockFi Account (BIA) by depositing certain cryptocurrencies, including Bitcoin and Ether. It then pools these cryptocurrency deposits to fund its cryptocurrency lending operations and its own trading. In exchange for investing in BlockFi accounts, investors are promised an attractive interest rate that is paid in crypto on a monthly basis.
According to the New Jersey Securities Bureau, accounts in BIA BlockFi are securities in the form of interest-bearing cryptocurrency accounts. Through the sale of unregistered securities and in violation of the Securities Act, BlockFi raised at least $ 14.7 billion. dollars around the world. Also, through its affiliates BlockFi Lending LLC and BlockFi Trading LLC, it finances cryptocurrency lending and private trade.
Acting Attorney General Andrew J. Brook announced that the New Jersey Securities Bureau has issued a Consolidated Order banning BlockFi Inc from selling unregistered securities as interest-bearing cryptocurrency accounts.
For its part, BlockFi tweeted:
“We are in active dialogue with several regulators to demonstrate that the BlockFi Account (BIA) is not a security and should not be regulated as such. We strongly believe that BIAs are legal and appropriate for market participants. We remain steadfast in our commitment to the fight for consumer rights. ”
2/ BlockFi is fully operational for all existing clients everywhere in the world, and clients will continue to have access to all products, services, and assets on BlockFi.
– BlockFi (@BlockFi) July 22, 2021
The company has notified investors that it remains committed to going public for 12-18 months.
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