SEC Reportedly Looking Into BlockFi’s Crypto Yield Products

The crypto lender was already in hot water with a number of state securities regulators earlier this year.

Nov 17, 2021 at 2:38 p.m. UTC
Updated Nov 17, 2021 at 4:31 p.m. UTC

BlockFi’s high-yield crypto interest products have reportedly come under the federal microscope.

Citing one anonymous source, Bloomberg reported Wednesday the U.S. Securities and Exchange Commission (SEC) is “scrutinizing” the New Jersey-based crypto lender. Reportedly at issue are BlockFi’s marquee landing products, which can yield as much as 9.5%.

BlockFi has maintained that its product is not a security. But securities regulators appear to disagree. Earlier this year, a bevy of state-level agencies opened investigations into BlockFi, which would make the SEC only the latest force to give a look.

BlockFi declined to comment.

UPDATE (Nov. 17, 14:43 UTC): Adds that BlockFi declined to comment.

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