BlockFi Ordered to Cease and Desist in NJ

The New Jersey Bureau of Securities has ordered financial services platform BlockFi to stop accepting and offering customers of interest-bearing accounts. This is the first time the financial regulator has issued a cease-and-desist order to a digital currency platform that gives a yield on the amount its users are lending since the ‘bull run.’

In a draft press release published by media on July 20, the New Jersey Attorney General’s Office said that BlockFi has been funding its operations through selling of unregistered securities, which is allegedly in violation of securities law.