Texas and Alabama raised issues against BlockFi , After New Jersey
A groupism is going on against the BlockFi platform. After the action of New Jersey regulators, Texas & Alabama regulators raised their issue against BlockFi.
Recently, New Jersey regulators warned BlockFi to halt their services for new Customers from 29 July. While BlockFi team responded against the Orders and claimed that their operations are under regulations and also they will continuously Provide their services for their existing customers.
Related: BlockFi Ordered to Stop Accepting New Customers
Now two other states regulators entered in the same list to raise issues against the operation of Blockfi platform.
Texas regulators raised issue against BlockFi and stated about Blockafi Operations
BlockFi “is, in part, illegally funding its lending operations and proprietary trading through the sale of unregistered securities in the form of cryptocurrency interest-earning accounts.”
So according to Texas regulators, BlockFi is operating their services based on illegal funding & also they are selling unregistered securities through crypto assets. Now regulators will fire their actions through systematic lawsuits. A date in October is set to appear in court hearing.
Alabama also raised their issue against BlockFi. Alabama regulators give 30 days time to the team of BlockFi. They are ordered to show state securities commission why they should not be issued a cease and desist for selling unregistered securities. Show cause order will ensure the operations of BlockFi whether their Securities are under regulation framework or not.
All these things are clearly showing that how regulation authorities are doing groupism against crypto services. Before the new jersey regulators, no one talked about Blockfi but after Jersey regulators, every regulator is coming together to fire on BlockFi. Probably same thing happening with the Binance Exchange.
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