BlockFi
A U.S. crypto lender that, in February 2022, paid $100M to settle SEC and 32-state charges that its BlockFi Interest Accounts were unregistered securities — a first-of-its-kind action. It later froze withdrawals and filed for bankruptcy in November 2022 amid FTX exposure.
Also known as: BlockFi, BlockFi Interest Account, BIA
Summary
BlockFi was a New Jersey-based crypto financial-services company best known for its BlockFi Interest Accounts (BIAs), which let retail customers earn yield by lending it their crypto. [1]
SEC settlement
In February 2022 the SEC charged BlockFi with failing to register the offers and sales of BIAs and with violating the Investment Company Act — described as a first-of-its-kind action. BlockFi agreed to pay a $50 million SEC penalty plus $50 million to 32 states (a combined $100 million), then the largest SEC penalty against a crypto-asset issuer, and to stop offering BIAs to new U.S. customers. [1]
Collapse
In November 2022, following the collapse of FTX (with which it had a credit relationship) and exposure to Three Arrows Capital, BlockFi paused withdrawals and filed for Chapter 11 bankruptcy, listing 100,000+ creditors and $1B–$10B in liabilities. [2]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
Sources (2)
See also
- Bitcoin Latinum (LTNM)TokensA ~$16M token offering (SAFTs for 'Bitcoin Latinum' / LTNM) that the SEC charged in 2026 as fraud: founder Donald Basile falsely called LTNM 'the world's first insured digital asset' backed by an 'existing trust,' neither of which existed, and diverted investor funds for personal use (including a $160,000 horse).
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.