The New Jersey Bureau of Securities had issued a cease and desist order to centralized crypto lending firm, BlockFi, preventing it from onboarding new interest account clients in the state.
The news was first broken by Forbes on July 19, with the outlet citing an undated, unpublished draft press release which revealed that the New Jersey Bureau of Securities was planning to issue a Summary Cease and Desist order to BlockFi.
The draft reportedly accuses BlockFi of offering unregistered securities to its customers. The document purported to quote Acting Attorney General Andrew J. Bruck as stating:
“Our rules are simple: if you sell securities in New Jersey, you need to comply with New Jersey’s securities laws. No one gets a free pass simply because they’re operating in the fast-evolving cryptocurrency market.”
On July 20, Zack Prince, BlockFi’s CEO, confirmed the firm had received an order from the New Jersey Bureau of Securities ordering it to stop onboarding BlockFi Interest Account (BIA) clients