#Blockfi faces sec scrutiny over highyield full
and globally to operate in full compliance with the law.” “We always have, and will continue to, work with regulators in the U.S. “All discussions with regulators are confidential,” said Bethany Davis, a spokeswoman for Celsius.
“We are cooperating voluntarily with this industry-wide inquiry.” “We are one of many companies the SEC has reached out to regarding crypto yield products,” Gemini spokeswoman Carolyn Vadino said in a statement. Read More: BlockFi Faces SEC Scrutiny Over High-Yield Crypto Accounts Those reviews are ongoing, and the firms have disputed the allegations. BlockFi Inc., another crypto lender, faces SEC scrutiny, Bloomberg reported last year, and both Celsius and BlockFi have been the subjects of earlier enforcement actions by state securities regulators. The probes add to uncertainty for the burgeoning sector, which is grappling with sharply falling coin prices - Bitcoin earlier this month plunged 50% from an all-time high - as well as regulators who are eager to put guardrails around digital assets. The firms are able to pay customers rates higher than most bank savings accounts by lending out their digital coins to other investors, a practice that the SEC and states including New Jersey and Texas have said raises concerns about investor protection. The SEC enforcement review focuses on whether the companies’ offerings should be registered as securities with the watchdog, said the people, who weren’t authorized to speak publicly. as part of a broad inquiry into companies that pay interest on virtual token deposits, according to people familiar with the matter. Securities and Exchange Commission is scrutinizing cryptocurrency firms Celsius Network, Voyager Digital Ltd. High-yield products have sparked investor protection concernsĪlex Mashinsky, founder and chief executive officer of Celsius Network.Photographer: Dania Maxwell/Bloomberg.Review focuses on whether offerings are securities, people say.Why get 10% APY on your USD when you can get 0.1% at Bank of America savings account?Ĭrypto Lending Firms Celsius Network, Gemini Face SEC Scrutiny Investors must be protected from high interest rates on their money!!
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