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New Jersey demands BlockFi halt its interest-bearing accounts, CEO: Products are not securities, in active dialogue

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New Jersey demands BlockFi halt its interest-bearing accounts, CEO: Products are not securities, in active dialogue

According to Forbes, the New Jersey Attorney General's Office has not issued a statement, but the state's securities regulator has asked the popular cryptocurrency financial platform BlockFi to cease and desist operations in the state. BlockFi CEO Zac Prince has responded that the services in New Jersey are not impacted and they are actively working with regulatory authorities to address the situation.

Unreleased News: Some Business Involves Sale of Unregistered Securities

BlockFi is an internationally renowned cryptocurrency financial platform that offers services such as lending, trading, credit cards, and financial products. Its financial products provide interest rates ranging from 0.25% to 8.5%. Since its establishment in 2017, BlockFi has raised $500 million in private funding, with a valuation of $5 billion.

Forbes stated that the article is undated and not yet published, alleging that some of BlockFi's lending and trading operations are being funded and facilitated through the sale of unregistered securities, thus violating securities laws. The state attorney general commented, "If you are selling securities in New Jersey, you must comply with New Jersey's securities laws. No one gets a free pass just because the cryptocurrency market is growing rapidly. We are closely monitoring this issue while protecting investors."

BlockFi CEO Zac Prince: Actively Communicating

In the United States, Bitcoin and Ethereum have been recognized as commodities by regulatory authorities. Most of the allegations regarding unregistered securities are related to token fundraising events like ICOs, such as EOS and Telegram. However, according to BlockFi CEO Zac Prince, they have received information regarding the "BlockFi Interest Account BIA," a financial product that is different from previous unregistered securities cases.

BIA is a product from BlockFi that offers interest returns, allowing users to deposit various cryptocurrencies and earn interest from BlockFi.

CEO Zac Prince stated that their operations in New Jersey are normal, and the order requires them to stop accepting new users from the state after 7/22. BlockFi is actively explaining to regulatory authorities that the BIA product is not a security.