In a recent blow to the crypto lender BlockFi, the Attorney General of New Jersey, Andrew J. Bruck accused BlockFi of contravening securities laws. BlockFi is a well-known name in the crypto industry and the firm has recently been ordered to stop offering its services to new customers in New Jersey.

Crypto Lender BlockFi to Halt Expanding User Base in New Jersey

The CEO of BlockFi crypto lending company, Zac Prince shared a tweet on Monday night that revealed that the Attorney General of New Jersey has accused the firm of violating rules and has ordered the firm to stop adding new customers.

BlockFi is known for providing yields of up to 8% to their customers who are willing to lend out their crypto assets.

Prince released a statement regarding the order from the AG, that said:

“The order calls for BlockFi to stop accepting new [BlockFi Interest Account] clients residing in New Jersey beginning July 22, 2021.”

In addition to this, he confirmed that the existing customers will be able to avail benefits of the services provided by the firm.

Andrew J. Bruck’s Comment in The Official Press Release

Andrew Bruck released a draft that said:

“Our rules are simple: if you sell securities in New Jersey, you need to comply with New Jersey’s securities laws. No one gets a free pass simply because they’re operating in the fast-evolving cryptocurrency market. Our Bureau of Securities will be monitoring this issue closely as we work to protect investors.”

Apart from this, the main thing to have a look at is the entire working of the firm in New Jersey and find out whether the whole operation of the firm violates the securities laws of the country.

Also, it should be noted that the recent blow to BlockFi triggered a price action of Bitcoin and the price of BTC responded to this news by going down.