In what is set to be one of the toughest penalties against a cryptocurrency firm, details have now emerged that the foremost crypto lending platform, BlockFi, is set to pay a fine of $100 million to the Securities and Exchange Commission (SEC) of the United States government.
The company decided to pay the fine in a bid to settle an ongoing investigation into its activities by the commission.
BlockFi to stop new accounts creation
The investigation began following allegations that the firm was illegally offering a product that pays customers high-interest rates to lend out their digital tokens, according to people familiar with the matter.
Aside from the payment of this fine, Bloomberg reported that the firm would also stop creating new high-yield accounts for residents in the United States.