Published
November 18, 2022
Updated
June 7, 2026
BlockFi's crypto Interest Accounts drew $100 million in SEC and state penalties over alleged unregistered securities — here is what the investigation claimed and why no investor claim form is open.
Allegations Only · Investigation
This article describes a class action investigation and related regulatory actions. The statements below are allegations. The regulatory matters were resolved through settlements without findings of liability on every claim, there is no certified investor class on this page, and this page is informational and is not legal advice.
What's This About?
On March 1, 2022, a class action lawsuit was filed against BlockFi Inc. ("BFI"), a financial services company that generated revenue through cryptocurrency lending, borrowing, and trading. Plaintiffs alleged that BlockFi violated the Securities Act of 1933. Specifically, the complaint alleged that since March 4, 2019, BFI had funded its lending operations and proprietary trading through the sale of unregistered securities — the "Crypto Interest Account" or "BlockFi Interest Account," known collectively as "BIAs" — in the form of cryptocurrency interest-earning accounts.As of December 8, 2021, BlockFi and its affiliates reportedly held approximately $10.4 billion in BIA investor assets, with about 572,160 BIA investors, including roughly 391,105 investors in the U.S. The New Jersey Bureau of Securities issued a cease-and-desist order to BFI in July 2021, ordering it to stop the offer and sale of unregistered securities. That order did not preclude paying interest on existing BIAs or refunding principal to BIA investors.
On February 14, 2022, the U.S. Securities and Exchange Commission charged BlockFi with failing to register the offers and sales of its retail crypto lending product. To settle those charges, BlockFi agreed to pay a $50 million penalty and to stop unregistered offers and sales of the lending product and BlockFi Interest Accounts. BlockFi separately agreed to pay an additional $50 million to settle similar charges brought by state regulators.
Status
Closed to New Claims
This investigation is no longer accepting new claims
Regulatory Penalty
$50M to the SEC
Plus an additional $50M to settle parallel state charges
Can I Claim?
No — not accepting new claims
No open investor claim form on this page
Who Was Affected?
The allegations concerned retail customers who enrolled in a BlockFi Interest Account or Crypto Interest Account and earned interest on deposited cryptocurrency. Because BIAs were marketed broadly to U.S. retail investors, the potentially affected group was large — hundreds of thousands of accounts by BlockFi's own reported figures.What's the Current Status?
This class action investigation is no longer accepting new claims. The SEC and state regulatory matters were resolved through the penalties described above, and BlockFi later entered bankruptcy proceedings. There is no open investor claim form on this page. Anyone who held a BlockFi account should rely on official communications from BlockFi's bankruptcy estate and the relevant regulators for the status of any distributions.Frequently Asked Questions
Is there a BlockFi settlement I can claim?
This investigation is no longer accepting new claims. The SEC penalty ($50 million) and the additional $50 million paid to state regulators were regulatory penalties, separate from any private claim, and there is no open investor claim form here.What did the investigation allege?
That BlockFi Interest Accounts were unregistered securities and that BlockFi funded its lending and trading through their sale. These were allegations, resolved through regulatory settlements.Did the SEC fine BlockFi?
Yes. In February 2022 the SEC announced BlockFi agreed to pay $50 million to settle charges that it failed to register the offers and sales of its retail crypto lending product, and to stop the unregistered offers and sales.Sources
• U.S. Securities and Exchange Commission — press release on BlockFi charges and settlement (Feb. 14, 2022): SEC.gov• Legal Information Institute (Cornell Law) — Securities Act of 1933: law.cornell.edu
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Status
Closed to New Claims
Defendant
BlockFi Inc.
Regulator
U.S. Securities and Exchange Commission
SEC Penalty
$50 million (plus $50 million to states)
Date Charged
February 14, 2022
Official Source
SEC Press Release
