I've been following the BlockFi saga since last year:
[https://commonstock.com/post/8a165d7f-1f43-4cb8-aadf-57b709de0d83](https://commonstock.com/post/8a165d7f-1f43-4cb8-aadf-57b709de0d83)

Yesterday it was announced that BlockFi would pay $100 million in fines to regulators for failing to register its BlockFi Interest Account lending product as a security (and misrepresenting the product’s risks.)

Current BlockFi Interest account holders will continue to earn interest on the funds they currently have in their BIA.

The $100 million fine is the largest penalty ever assessed in a crypto enforcement action.

From my perspective BlockFi is doing the same thing as banks— taking your deposits and lending it out. But regulators disagree.

Does this spell an end to BlockFi?

![](https://cdn.commonstock.com/0256f813b39d7c3151419df78a95931a33a15ca051d9ccb5d13e793e695d394e-457x397.png)

It'll be interesting what happens after they apply for whatever license then try it again.  The SEC says they are protecting consumers, but they are protecting them to the detriment of them making money.

Jacob K Thomas

People in the US can no longer add funds to or open new BlockFi Interest Accounts

This member connected a brokerage account and is sharing trades and portfolio performance with the community. 