Cryptocurrencies

BlockFi Says Vermont Has Joined Ranks of States Probing the Crypto Lender

BlockFi CEO Zac Prince (CoinDesk archives)

Embattled cryptocurrency lender BlockFi is facing scrutiny from regulators in a fourth state, Vermont, over the legality of its interest account product.

According to BlockFi’s website, securities regulators in Vermont have issued an order on the matter. What that order said is not yet known.

But it comes as agencies in Alabama, Texas and New Jersey are investigating whether the firm’s marquee offering, the BlockFi Interest Account (BIA), violates local securities laws. New Jersey has given BlockFi until July 29 to explain itself before the state bars the firm from opening new accounts.

Related: Crypto News Roundup for July 23, 2021

BlockFi has countered that it does not believe BIA is a security. It said it is in active discussions with regulators on the matter.

Neither BlockFi nor the Vermont Department of Financial Regulation responded to a request for comment from CoinDesk.

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