New Jersey orders BlockFi cryptocurrency firm to stop offering interest-bearing accounts – Reuters

SectorFinancial Markets
CountryMiddle east

Representations of virtual currency bitcoin on top of a U.S. dollar banknote are pictured through broken glass in this illustration taken June 25, 2021. REUTERS/Dado Ruvic/Illustration

July 20 (Reuters) – New Jersey ordered the cryptocurrency platform BlockFi Inc to stop offering interest-bearing accounts that have raised $14.7 billion from investors, the state’s acting attorney general said on Tuesday.

A cease and desist order from New Jersey’s Bureau of Securities said BlockFi’s accounts were not registered with that office or exempt from registration, and their sale violated New Jersey securities laws.

Andrew Bruck, the acting attorney general, said the enforcement action against Jersey City, New Jersey-based BlockFi came amid concern about the growth of decentralized finance platforms for investors in digital assets.

According to the order, investors can buy BlockFi Interest Accounts by depositing cryptocurrencies such as Bitcoin and Ethereum with the company, which uses them to fund lending operations and proprietary trading.

The order said BlockFi offers yields from 0.25% to 7.5%, depending more...