According to a new report, the US Securities and Exchange Commission has pursued the huge bitcoin lender for excessive yield interest rates.

The Securities and Exchange Commission (SEC) has taken notice of BlockFi, a crypto lending platform based in New Jersey, due to its alleged high yield interest rates on crypto lending.

On Wednesday (November 17, 2021), an anonymous source told Bloomberg that the Securities and Exchange Commission was looking into BlockFi.

According to the company, its loan solutions can earn up to 9.5 percent per year, much greater than the average interest rate on bank accounts, which is 0.06 percent.

The SEC’s investigation looks at whether the company’s products are securities and thus fall under the jurisdiction of the US regulator. However, BlockFi’s CEO, Zac Prince, has stated that the platform’s accounts could not be categorized as secure.

While the SEC is the most recent regulatory authority to target BlockFi, other state agencies in the United States have also taken action.

The New Jersey Bureau of Securities ordered the lending platform to stop issuing its BlockFi Interest Account (BIA), alleging that the product breached securities rules.

The firm was also ordered by the New York regulatory authorities to stop taking new clients as of July 22.

Although the SEC has yet to take action against BlockFi, it threatened to sue bitcoin exchange firm Coinbase in September if it went ahead with its planned lending business. Following SEC pressure, Coinbase eventually shut down the service.

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