Wyoming Joins Settlement With Digital Asset Lending Platform BlockFi for Sales of Unregistered Securities

As Wyoming’s State Securities Commissioner, Wyoming Secretary of State Ed Buchanan announced Monday that a digital-asset services company, BlockFi Lending LLC, agreed to enter into a consent order with the Wyoming Secretary of State’s office to settle offers and sales of unregistered securities in the form of interest-bearing digital asset deposit accounts called BlockFi Interest Accounts to Wyoming residents. As of December 31, 2021, BlockFi had over 407,000 BIA investors in the United States, of which 759 were Wyoming residents.

According to a media release from the Secretary of State’s Office,  BlockFi agreed to pay $50 million to the 53 North American Securities Administrators Association member agencies and $50 million to the U.S. Securities and Exchange Commission to settle its offers and sales of unregistered securities. The 53 NASAA member agencies will share equally in their half of the settlement. BlockFi will pay the Wyoming Secretary of State $943,396.22 to remedy its past unregistered offer and sale of securities to Wyoming residents.  All penalty fines are deposited in the Public School Fund per the Wyoming Constitution.