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Alabama Issues 'Show Cause' Order to BlockFi
The Alabama Securities Commission alleges that BlockFi has funded cryptocurrency lending in part through the sale of unregistered securities.
Updated Sep 14, 2021, 1:29 p.m. Published Jul 22, 2021, 11:11 a.m.
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BlockFi is under fire from a second U.S. state over concerns its interest-bearing crypto accounts may be unregistered securities.
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- Late Wednesday, the Alabama Securities Commission asked crypto lender BlockFi to show why it should not be required to stop selling unregistered securities in the state.
- The commission alleges that BlockFi has funded cryptocurrency lending and proprietary trading at least in part through the sale of unregistered securities.
- BlockFi Interest Accounts (BIAs) are not registered with the regulator, the commission said Wednesday.
- The company has 28 days to respond.
- In a tweet, BlockFi said that it believes its products are lawful and appropriate and that BIAs are not securities.
Read more: NJ Regulators Give BlockFi 1 Week Before Blocking New Interest Accounts
