Alabama Issues 'Show Cause' Order to BlockFi

The Alabama Securities Commission alleges that BlockFi has funded cryptocurrency lending in part through the sale of unregistered securities.

Jul 22, 2021 at 11:11 a.m. UTC
Updated Sep 14, 2021 at 1:29 p.m. UTC

BlockFi is under fire from a second U.S. state over concerns its interest-bearing crypto accounts may be unregistered securities.

  • Late Wednesday, the Alabama Securities Commission asked crypto lender BlockFi to show why it should not be required to stop selling unregistered securities in the state.
  • The commission alleges that BlockFi has funded cryptocurrency lending and proprietary trading at least in part through the sale of unregistered securities.
  • BlockFi Interest Accounts (BIAs) are not registered with the regulator, the commission said Wednesday.
  • The company has 28 days to respond.
  • In a tweet, BlockFi said that it believes its products are lawful and appropriate and that BIAs are not securities.
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