Takeaways from the SEC’s $100 million fine against FinTech lender BlockFi, with Brad Rustin


So apparently it’s true: executing a loan transaction without registering with the SEC makes them grumpy.

spoiler alert: On Valentine’s Day this year, the SEC announced a $100 million fine against cryptocurrency lender BlockFi Lending. Nothing says “will you be mine?” like a nine-figure bill – for that special someone who has everything. The company has agreed to halt some of its offerings and sales, and get to work complying with, you know, the law, like the Securities Act of 1933 and the Investment Company Act of 1940.

So what does the SEC want companies to do? What remedies does the SEC have for unregistered securities offerings? What impact will this have on private litigation? Is there a risk that investors in the BlockFi Interest Account will have claims against BlockFi? You want to know?

Listen to my interview with attorney Brad Rustin. Brad is a partner in the Greenville, South Carolina office of Nelson Mullins Riley and Scarborough, where he chairs the firm’s financial services regulatory practice, leading a team of lawyers in a nationwide practice representing clients in regulatory matters finance and FinTech. This is Brad’s third appearance on the podcast! He talked about an episode about the impact of Russian sanctions on global financial markets and another popular episode about the gamification of stock trading. Brad is a valued member of the Editorial Advisory Board of Journal of Emerging Issues in Litigationa companion to this podcast. Want a sample copy? Let me send you one. Email me at Editor@LitigationConferences.com.

This podcast is the audio companion to Journal of Emerging Issues in Litigation. the Log is a collaborative project between HB Litigation Conferences and the Fastcase legal research family, which includes Full Court Press, Law Street Media and Docket Alarm. The podcast itself is a joint effort between HB and our friends at Law Street Media. If you have any feedback or would like to participate in one of our projects, or want to tell me how much you learned from Brad, please send me a note at Editor@LitigationConferences.com.

For those of you who have a hard time understanding cryptocurrency, like a certain member of my family, listen to the bonus segment after the outro when Brad politely and patiently assists me in my quest to explain crypto to my stepmother. And, if I’m being honest, so am I.


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