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Did they offer an unregulated security where there is a chance to lose principle to unsophisticated retail investor which is well known to be illegal? The answe
by ivalm 5y ago
Did they offer an unregulated security where there is a chance to lose principle to unsophisticated retail investor which is well known to be illegal? The answer to that is yes.
- latchkey 5y agoTheir site has always been very clear on the risks involved. "Digital currency is not legal tender, is not backed by the government, and crypto accounts held with BlockFi are not subject to FDIC or SIPC protections. Digital currency values are not static and fluctuate due to market changes." What I think has never been clear is how they were able to manage the risk of their lending practices, in order to provide the big APYs.
- skybrian 5y agoI'm not sure how disclosure makes it not an unregistered security?
- matkoniecz 5y agoPage 9 of the PDF of the actual order (linked on the page under "SEC Order") explains how BlockFi made misleading claims: > From March 2019 through August 2021, BlockFi misrepresented on its website that its institutional loans were “typically” over-collateralized, when in fact, most institutional loans were not. (copy of https://news.ycombinator.com/item?id=30335113 https://news.ycombinator.com/item?id=30335113 )