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ARTICLE · 16 FEBRUARY 2024

Crypto Platform Settles SEC And State Regulator Charges Over Interest Bearing Feature On Customer Accounts

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On February 7, a Florida-based cryptocurrency company agreed to settle charges brought by the SEC and the California Department of Financial Protection...

United StatesTechnology
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
Maxwell Earp-Thomas
Maxwell Earp-Thomas
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On February 7, a Florida-based cryptocurrency company agreed to settle charges brought by the SEC and the California Department of Financial Protection and Innovation alleging that, an interest-earning feature offered on the company's platform, constitutes an illegal securities offering.

The earning feature allowed investors to deposit crypto assets in an account on the company's platform. In exchange, the company would deploy the deposited assets to generate revenue which accrued to the account. The company rolled out the lending product in 2020, pitching it as a way for investors to "Put your crypto assets to work for you." The product, however, was voluntarily abandoned in 2022.

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