thecoinrise.com
Crypto lending platform BlockFi has announced the relaunch of its reward program dubbed BlockFi Yield for accredited investors.
Beginning at the end of 2022, this program will be available in its beta version to selected US clients, afterwards, it will be available to all US clients at the start of the new year. This class of investors will now be able to earn interest on digital assets with BlockFi yield.
Additionally, the program offers competitive interest rates on digital assets with no minimum investment. Clients can also trade and earn interest on digital assets at the same time. To access the product, U.S clients are required to complete an investor accreditation request after which they will be able to access BlockFi’s digital asset interest services.
Interestingly BlockFi has paid out over $600 million to its interest on digital assets since it began offering the product. According to Flori Marquez, founder and COO of BlockFi, the platform is also working on registering the product with the SEC to offer it to the general public.
Regulators Fine BlockFi for Offering Unregistered Product
BlockFi had initially stopped offering the product in February after the SEC claimed it failed to register it. At the time, the lender agreed to pay the SEC and state regulators $50 million each.
It also agreed to stop opening new accounts of its high-yield lending product to most Americans as part of the agreement. The charge against BlockFi was the first of its kind case for the SEC against lending platforms.
The charge by the regulator is a warning shot to other players as the SEC stresses the need to abide by regulatory standards after the collapse of lending platforms like Voyager and Celsius necessitated scrutiny of the space.
Meanwhile, in response to the extended crypto winter, BlockFi laid off 20% of its over 850 employees. The lender also reduced marketing expenses and executive salaries and also eliminated non-essential vendors in an attempt to reduce costs. BlockFi also secured $250 million from FTX Derivatives Exchange in revolving credit to bolster its operations.