New Jersey Slaps Cease-and-Desist Order on Digital Asset Wealth Manager, Says DeFi’s Risks Outweigh Crypto Volatility

New Jersey Slaps Cease-and-Desist Order on Digital Asset Wealth Manager, Says DeFi’s Risks Outweigh Crypto Volatility


The New Jersey Bureau of Securities is calling on the crypto wealth manager BlockFi to stop offering interest-bearing accounts.

Acting Attorney General Andrew J. Bruck announced today that the Bureau of Securities issued a cease-and-desist order against BlockFi in an effort to protect investors. 

 

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According to the Bureau’s order, BlockFi has been funding its cryptocurrency lending operations and trading at least in part through the sale of unregistered securities.

“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. Our Bureau of Securities will be monitoring this issue closely as we work to protect investors.”

The Bureau’s actions are a reflection of their concerns about platforms like BlockFi that “seek to reinvent traditional financial systems such as banks and brokerages for digital asset investors.” The Bureau stresses that investors’ losses are not insured

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