- BlockFi is launching its first-ever crypto interest product from the time it paid a $100 million deal with the SEC this February and accepted that it will not offer it to Americans.
- BlockFi Yield is a crypto interest-carrying option and is accessible to accredited investors in America by the Reg D [506(c)] relief from the Securities Act of 1933.
The co-founder and COO of BlockFi, Flori Marquez said that “the summer events were an actual test of our risk protocol and it also makes us bullish about our dedicated risk management structure and we are thrilled to take the crypto interest bearing accounts to the U.S. investors back.”
By March, the company held about $14 billion in customer assets mostly because of lending and borrowing. Currently, we can’t explain the difference between the new Yield product and the original interest account offering. The terms of BlockFi Yield and BlockFi Interest Account are mostly similar.
After paying the biggest settlement of a crypto company with the U.S. regulators, the company was affected by the falling crypto prices and the bankruptcy of Three Arrows Capital. After the failure of Three Arrows, BlockFi was pressurized to take an $80 million loss.
Other companies have worked in the favor
While reviewing the requirement of inspection in crypto lending businesses and the companies to accurately describe the risks to customers, Marquez asserted that other companies have worked in the favor of this company.
She also revealed that “if you have queries that what happened to companies like BlockFi, unsurprisingly, supply is smaller and currently we are only one company that is running in the United States and thus it transformed from being a market of borrowers to a market of lenders.
A few days ago, BlockFi has reappeared as a creditor for Core Scientific, which alerted in October that it may not be capable of paying its debt. In the scene of Core’s worst-case, BlockFi will be answerable to a whooping loan of $60 million.
But, Marquez repeated that the firm is ready, thanks to keeping increased capital reserves for probable loan default among other things.
“We operate a varied lending business. So loans of Bitcoin miners are in a minor portion of our total lending portfolio. Each and every outstanding loan are collateralized. We haven’t written a new Bitcoin mining loan from the spring of 2022.”
Source: https://www.thecoinrepublic.com/2022/11/08/blockfi-reintroduces-crypto-yield-accounts-to-u-s-accredited-investors/