US State Regulator Warns About Crypto Interest-Bearing Accounts Amid Market Downturn

The financial regulator of the U.S. state of Arizona has warned investors about crypto interest-bearing accounts. “Some companies may materially overstate the degree to which their collateral practices protect their ability to pay investors the stated return,” the regulator said.

State Regulator Warns About Crypto Interest-Bearing Accounts

The Arizona Corporation Commission issued an investor alert this week, warning about “digital asset financial services companies that offer interest-bearing crypto-asset accounts.”

The regulator explained: “With crypto-interest accounts, customers lend crypto assets to the company and, in exchange, receive interest paid in crypto assets.” The Arizona Corporation Commission elaborated:

i alla fall, due to the crypto market downturn, highlighted by the recent bankruptcy filings of Celsius Network and Voyager Digital, some companies are preventing account holders from withdrawing from and transferring between their accounts.

The securities regulator cautioned investors that “some crypto-interest account providers may not have adequately disclosed the risks that customers face when they deposit crypto assets onto these platforms,” adding:

Some companies may materially overstate the degree to which their collateral practices protect their ability to pay investors the stated return.

The commission recently took action against Blockfi Lending LLC and found that certain crypto-interest accounts were unregistered securities.

The regulator revealed that it is investigating whether other crypto-interest account providers are violating laws under its jurisdiction.

This month, crypto lenders Celsius Network and Voyager Digital filed for bankruptcy protection. The Department of Financial Regulation of the U.S. State of Vermont said it “believes Celsius is deeply insolvent and lacks the assets and liquidity to honor its obligations to account holders and other creditors.”

Se även  Det säger IMF till El Salvador: Kostnaderna för att göra Bitcoin lagligt anbud överstiger potentiella fördelar

Voyager CEO Stephen Ehrlich explained why his company filed for bankruptcy: “The prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital (‘3AC’) on a loan from the company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now.”

Taggar i denna berättelse

What do you think about the warning by the AZ financial regulator? Låt oss veta i kommentarsfältet nedan.

Kevin Helms

Student i österrikisk ekonomi, Kevin hittade Bitcoin i 2011 och har varit evangelist sedan dess. Hans intressen ligger i Bitcoin säkerhet, system med öppen källkod, nätverkseffekter och skärningspunkten mellan ekonomi och kryptografi.




Bildkrediter: Shutterstock, Pixabay, Wiki Commons

varning: Den här artikeln är endast i informationssyfte. Det är inte ett direkt erbjudande eller uppmaning till ett erbjudande att köpa eller sälja, eller en rekommendation eller rekommendation av någon produkt, tjänster, eller företag. Bitcoin-Tidings.com ger inte investeringar, beskatta, Rättslig, eller redovisningsrådgivning. Varken företaget eller författaren ansvarar, direkt eller indirekt, för alla skador eller förluster som orsakas eller påstås vara orsakade av eller i samband med användningen av eller tilliten till något innehåll, varor eller tjänster som nämns i denna artikel.

Läsa varning