- BlockFi facing a nearly $1 million fine imposed by the State of Iowa.
- 53 jurisdictions are involved in the investigation.
The leading trading platform BlockFi was ordered to pay more than $943,000 by the Iowa Insurance Division (IID) for failing to register securities in the state, and the order came after a multistate investigation. According to the state regulator, BlockFi is not registered as a broker-dealer or an agent.
JUST IN: BlockFi faces a $943,000 fine for allegedly registering improperly.
— Watcher.Guru (@WatcherGuru) June 15, 2022
Violation of The State’s Securities Act
On June 14, the press release by the Iowa Insurance Division, BlockFi had offered and sold assets in Iowa that were not registered or permitted for sale in the state. The trading platform offered and sold securities in Iowa without being licensed.
In violation of the state’s Securities Act, BlockFi was ordered by the IID to pay a $943,396.22 administrative penalty and to avoid making any inaccurate claim of material facts relating to securities.
The division order came after a multi-state inquiry by the Securities and Exchange Commission (SEC) and securities regulators from 53 authorities that were members of the North American Securities Administrators Association (NASAA).
BlockFi will also have to pay $50 million to the SEC and another $50 million to the 53 investigating jurisdictions, according to the press release.
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