Crypto firm BlockFi to pay record penalty to settle U.S. SEC, state charges

FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/File Photo/File Photo

WASHINGTON (Reuters) - A subsidiary of crypto company BlockFi Inc has agreed to pay $100 million to the U.S. Securities and Exchange Commission (SEC) and 32 states to settle charges in connection with a retail crypto lending product the New Jersey company offered to nearly 600,000 investors, regulators said on Monday.

The charges come as U.S. regulators, worried about investor protections and systemic risks, are cracking down on the booming crypto industry. The settlement is also an example of SEC chair Gary Gensler's strategy to force crypto companies to fall in line with existing U.S. securities laws. The agency said it hopes more companies will follow suit.