<\/p>\n
Linus Financial, a Tennessee-based financial technology company, has settled with the US Securities and Exchange Commission for alleged securities laws violations.<\/p>\n
Linus agreed to stop offering its retail crypto lending product. Per the settlement agreement, Linus Financial opted to neither confirm nor deny the charges, the SEC<\/a> said Thursday.\u00a0<\/p>\n According to the regulator, Linus offered its retail crypto lending product between March 2020 and April 2022.\u00a0<\/p>\n Linus converted tendered assets into USDC<\/a> and either transferred the USDC into liquidity pools on decentralized finance platforms or directly lent the USDC to institutional borrowers to generate returns for retail investors. Interest rates were generally between 3.5% and 4.5%, the SEC said<\/a>.\u00a0<\/p>\n The SEC claims that the retail product contained an investment contract, thus subjecting it to laws under the Securities Act.\u00a0<\/p>\n In March 2022, after increased regulatory scrutiny on the crypto lending industry, Linus opted to unwind its retail product, directing investors to withdraw funds and closing the offering to new investors. All investor funds had been claimed by late April 2022, the regulator said.\u00a0<\/p>\n In light of Linus\u2019 proactive decision to halt the product in 2022, on Thursday, the SEC said it would not be imposing civil penalties against Linus, instead opting to issue a formal cease and desist to the company from offering the product again.\u00a0<\/p>\n Stacy Bogert, associate director of the agency\u2019s Division of Enforcement, said that \u201c[t]he SEC will continue to hold companies accountable for failing to comply with federal securities laws.\u201d<\/p>\n Get the day\u2019s top crypto news and insights delivered to your email every evening.\u00a0Subscribe to Blockworks\u2019 free newsletter<\/a>\u00a0now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can\u2019t-miss tweets and more from\u00a0Blockworks Research\u2019s Daily Debrief<\/a>.<\/strong><\/p>\n Can\u2019t wait? Get our news the fastest way possible.\u00a0Join us on Telegram<\/a>\u00a0and follow us on\u00a0Google News<\/a>.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Linus Financial, a Tennessee-based financial technology company, has settled with the US Securities and Exchange Commission for alleged securities laws violations. Linus agreed to stop offering its retail crypto lending product. Per the settlement agreement, Linus Financial opted to neither confirm nor deny the charges, the SEC said Thursday.\u00a0 According to the regulator, Linus offered […]<\/p>\n","protected":false},"author":2,"featured_media":151867,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-151866","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/151866","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=151866"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/151866\/revisions"}],"predecessor-version":[{"id":151869,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/151866\/revisions\/151869"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/151867"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=151866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=151866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=151866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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