SEC and State Regulators Announce Cryptocurrency Startup BlockFi will pay $100 million to Settle Charges.

On February 14th, The North American Securities Administrators Association (NASAA) and the U.S. Securities and Exchange Commission (SEC) jointly announced a $100 million settlement with BlockFi Lending, LLC (BlockFi) concerning its lending products and practices. Thirty-two state securities regulators have agreed to the terms of a settlement with BlockFi to resolve its past unregistered activities. More state jurisdictions are expected to follow.  According to the SEC’s press release, BlockFi’s parent company also announced that it intends to register under the Securities Act of 1933 the offer and sale of a new lending product.  The SEC said its $50 million share of the settlement was the agency’s biggest penalty yet against the fast-growing cryptocurrency industry, which is the subject of growing scrutiny from lawmakers and regulators.