New Jersey attorney general issues cease and desist order to BlockFi

BlockFi, a cryptocurrency lending platform, has been slapped by the New Jersey acting attorney general (AG) with a cease and desist order to halt its Interest Account (BIA) operations in the state.

Acting Attorney General Andrew Bruck, who took office on Monday, appears to be setting the tone for his new position.

BlockFi chief executive officer Zac Prince, on the other hand, declined to comment further when contacted by CoinDesk.

Still operational

According to the acting AG’s order, BlockFi must stop accepting new BIA clients residing in New Jersey on July 22, 2021. Prince, however, confirmed it in a tweet.

Prince said the cease and desist order was received late Monday. 

BlockFi is still “fully operational” for its existing clients in New Jersey, according to Prince, and all aspects of the platform are still available to them.

“We will continue to engage with all relevant authorities to protect our clients’ interests and ensure that our products remain available,” Prince said.

The unfazed CEO

It’s also the latest setback for the embattled lender, which in May had incorrectly deposited and then attempted to reverse large amounts of bitcoin into users’ accounts.

In March, BlockFi was also targeted by a hacker who spammed its platform with fake sign-ups and abusive language.

In related news, BlockFi has cut interest rates on a variety of crypto-asset deposits, just about three months after lowering rates in March.

The decision to slash rates on bitcoin deposits was made in response to “changing market conditions” — leaving BlockFi’s competitors scratching their heads.


Image courtesy of Cointelegraph News/YouTube

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