According to BlockFi’s liquidation committee, the U.S. Securities and Exchange Commission (SEC) has agreed to waive some of the penalties imposed in the cryptocurrency lender’s bankruptcy proceedings.
Court documents published on the liquidation commission’s official website say that the SEC has agreed to waive $30 million in fines from BlockFi and use those funds to reimburse investors.
The payment represents the remainder of a total $50 million fine that the platform owed the SEC for after being accused of unregistered sales of cryptocurrency credit products.
Commenting on the upcoming payments, BlockFi’s liquidation committee drew the platform’s users’ attention to the fact that withdrawals will take place in installments according to an approved schedule. An electronic notice will be sent to eligible investors.
Bankrupt cryptocurrency lender BlockFi announced
plans to liquidate its platform in May after a series of unsuccessful attempts to sell its business.
Eleanor Ashworth is editor-in-chief at BTCNews. A Cambridge-trained journalist with 18 years across the Financial Times, Reuters and the Telegraph, she joined the crypto beat in 2017 after covering the Bank of England and HM Treasury. She holds the SABEW Best in Business award (2022) and was shortlisted for the British Journalism Awards (2023). At BTCNews she sets the editorial line for Bitcoin and macro markets coverage, with a focus on institutional adoption, regulation and central-bank policy. Based in London.
