2022-02-14 Biggest SEC fine to a crypto platform. 

According to sec.gov BlockFi were fined with 2 fines of 50 m. Each for it's lending/yielding services.

Since most of the people are staking/lending their crypto currencies for profit it means that this fine is a big red flag for other platforms that offers these services.

Washington D.C., Feb. 14, 2022 —

 

The Securities and Exchange Commission today charged BlockFi Lending LLC (BlockFi) with failing to register the offers and sales of its retail crypto lending product. In this first-of-its-kind action, the SEC also charged BlockFi with violating the registration provisions of the Investment Company Act of 1940. To settle the SEC’s charges, BlockFi agreed to pay a $50 million penalty, cease its unregistered offers and sales of the lending product, BlockFi Interest Accounts (BIAs), and attempt to bring its business within the provisions of the Investment Company Act within 60 days. BlockFi’s parent company also announced that it intends to register under the Securities Act of 1933 the offer and sale of a new lending product. In parallel actions announced today, BlockFi agreed to pay an additional $50 million in fines to 32 states to settle similar charges. 

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As we can seen in citation above BlockFi promised to take action to actually legalize it's business and stop providing these services (To American citizens) until they find the legal solution.   If successful, it could be a big step forward and a "lighthouse" for other Crypto platforms that provide similar services it can also be a hatchet over the head for smaller platforms that don't have strong financial grounds to go the legal way about providing similar services.

• BlockFi is fined 100 million and agrees to pay.
• BlockFi stopped providing unregistered offers of it's lending services. 
• BlockFi Attemps to bring these services within the required law.