BlockFi Company completes a $500 million investment round, after which its capitalization will leave $4.75 billion. Attracting investments takes place against the background of increasing problems with regulatory authorities.
BlockFi allows investors to open a BlockFi account (BIA) by depositing certain cryptocurrencies, including bitcoin and ether.& nbsp;Then combines these deposits in cryptocurrencies to finance their cryptocurrency lending operations and their own trading.In exchange for investing in BlockFi accounts, investors are promised an attractive interest rate, which is paid in cryptocurrency on a monthly basis.
According to the New Jersey Securities Bureau, accounts in BIA BlockFi are securities in the form of interest-bearing cryptocurrency accounts. Through the sale of unregistered securities and in violation of the Securities Law, BlockFi has raised at least $14.7 billion dollars worldwide. And also, through its affiliates BlockFi Lending LLC and BlockFi Trading LLC, finances cryptocurrency lending operations and private trading.
Acting Attorney General Andrew J. Brook announced that the New Jersey Securities Bureau has issued a Consolidated Order prohibiting BlockFi Inc from selling unregistered securities in the form of interest-bearing cryptocurrency accounts.
For its part, BlockFi said on Twitter:
“We are in active dialogue with several regulatory authorities to demonstrate that the BlockFi account (BIA) is not a security and should not be regulated as such. We firmly believe that BIA is legal and suitable for market participants. We remain unwavering in our commitment to the fight for consumer rights.”
2/BlockFi is fully operational for all existing clients everywhere in the world, and clients will continue to have access to all products, services, and assets on BlockFi.
— BlockFi (@BlockFi) July 22, 2021
The company has notified investors that it retains its intention to become public within 12-18 months.