BlockFi Used FTX Funds To Pay SEC Fines? Inquiries Ripple Counsel – Crypto News – Crypto News
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BlockFi Used FTX Funds To Pay SEC Fines? Inquiries Ripple Counsel – Crypto News

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3 years ago

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Sam Bankman-Fried (SBF) led the FTX crash has impacted the crypto market in the worst way possible. Crypto lender BlockFi is reportedly preparing for bankruptcy filing due to its extensive exposure to FTX. However, Ripple Counsel has raised some crucial questions regarding the FTX-BlockFi connection and its US SEC settlement.

FTX paid for Blockfi-SEC deal?

The SEC mentioned in a release that it has pressed charges against BlockFi for failing to register the sales and offers of its lending product. The commission highlighted that this is the first of its kind action taken against crypto lending platforms.

Stuart Alderoty, General Counsel of Ripple has found something fishy in the BlockFi and SEC settlement, He stated that nothing was ever “registered” as per the BlockFi/SEC deal.

He inquired about the first two payments on the $100 million fine and asked if they were ever made. Ripple General Counsel calls on the SEC to show BlockFi ability to pay and their source of funds. While FTX shows a $250 million loan to the crypto lending platform. However, now customer funds are blocked.

This creates doubt that did BlockFi pay the fine and did any of the funds for that fine come from FTX.

Who paid the fines then?

Alderoty slammed the SEC for marking the BlockFi deal as another “win” for regulation by enforcement. Meanwhile, the trouble lending platform left the customers holding the bag.

David Schwartz, Ripple CTO stated that this could turn out to be worse. As BlockFi borrowing funds from FTX for paying fines can be connected to BlockFi assets being stored in the crypto exchange.

Ashish believes in Decentralization and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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