Kentucky Has Also Dealt A Blow To BlockFi

US states continue their sanctions against BlockFi.

The US state of Kentucky has also dealt a blow to BlockFi, a platform that allows borrowing and lending with cryptocurrencies and earning interest income. Kentucky's financial markets oversight agency claimed that BlockFi's interest service violated securities laws. The Kentucky Securities Division has issued an order demanding that the company stop opening new accounts in the state. Previously, the states of New Jersey, Alabama, Vermont, and Texas have made similar decisions, alleging that BlockFi violated securities laws, as did Kentucky. According to the information on its website, BlockFi was providing cryptocurrency lending and receiving services through “BlockFi Interest Accounts (BIA)”. Investors could deposit money into the company at certain interest rates through these accounts. BlockFi has so far accepted $15 million in cryptocurrencies this way. Upon notification from Kentucky, BlockFi announced that it would immediately stop accepting new customers from the state. It was informed that the decision does not affect existing customers.