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

By Ashish Kumar. November 28, 2022. (CoinGape).

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 over the FTX-BlockFi connection and its U.S. SEC settlement.

FTX paid for Blockfi-SEC deal?

SEC in a release mentioned 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 of 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.

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