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BlockFi to Stop Opening Interest Accounts in New Jersey over Alleged Security Law Violation

UTC by Juhi Mirza · 2 min read
BlockFi to Stop Opening Interest Accounts in New Jersey over Alleged Security Law Violation
Photo: Unsplash

The existing users should not feel any concern regarding their account transactions as BlockFi will not be suspending any existing user interest accounts and will keep them running and operational.

BlockFi is the leading crypto trading platform that has received fresh orders from the Bureau of Securities in New Jersey to stop accepting new user interest accounts. According to speculative reports, the firm has been partly embroiled in the sale of unregistered securities which comes under a legitimate security violation.

BlockFi Receives a Cease and Desist Order from Bureau of Securities in New Jersey

BlockFi will not accept any new user accounts in New Jersey as the company has received an order from the BIS that is centered around BlockFi’s alleged involvement with the sale of unauthorized securities. The order received will primarily suspend the firm from accepting any new user interest accounts and will not allow BlockFi to add more users to their existing domain. However, the existing users should not feel any concern regarding their account transactions as the company will not be suspending any existing user interest accounts and will keep them running and operational.

The updated draft which has been making rounds in the press has stated the alleged participation of the multi-billion dollar firm with the sale of securities (partly) in an illegitimate manner.

The recent order has come from the New Jersey law office. The authorities are in the process to impose a perpetual halt of such activities that intend to pose a threat to security sale proceedings. This will require BlockFi to justify its stance regarding the matters of illegal sale to operate again in an unfazed manner.

BlockFi has been facilitating many user accounts on its domain and has offered increased APYs to generate a loyal pool of consumers and users. The trading exchange allows the users to trade in cryptocurrencies without the need to sell the actual assets.

The authorities at the New Jersey law office have issued a statement highlighting the cause of the order as a compliance issue. The attorney has stated that if BlockFi wishes to work with security exchange avenue operating in the region, it must comply with the norms established by the law in terms of the sale of securities and should prioritize their customers first before anything else.

Business News, Cryptocurrency news, News
Juhi Mirza
Author Juhi Mirza

Juhi Mirza is an archaeology major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.

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