SEC Settles With Linus Financial Over Unregistered Crypto Lending Product
The United States Securities and Exchange Commission (SEC) has announced that it won’t levy civil penalties on Linus Financial for its unregistered crypto lending product, because the firm cooperated promptly and took corrective actions.
“At no point has Linus filed a registration statement with the Commission for the offer and sale of the Linus Interest Accounts. Nor did the offer and sale of the Linus Interest Accounts qualify for an exemption from registration,” the filing explained.
Linus Financial SEC Action Sends A Warning To The Industry
The SEC recently stated that it hasn’t pressed charges against Linus Financial. However, it intends to strongly convey a message to companies offering crypto lending products without the proper licenses.
The statement noted,
“Today’s settlement provides a valuable message to other market participants about the importance of cooperation and remediation.”
The statement details that Linus Financial stopped offering its crypto lending product after learning that a similar investment product had faced regulatory action by the SEC.
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Upon realising, Linus allegedly stopped offering Linus interest accounts to new investors. It also requested that existing investors withdraw their funds within the next 30 days. “All investor funds have since been withdrawn,” the statement added.
Stacy Bogert, Associate Director of the SEC’s Division of Enforcement, commented that the SEC continues to crackdown on firms providing crypto products without the licenses in place. “The SEC will continue to hold companies accountable for failing to comply with federal securities laws,” Bogert stated.
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The post SEC Settles With Linus Financial Over Unregistered Crypto Lending Product appeared first on Crypto News Australia.
Filed under: Bitcoin - @ September 8, 2023 12:34 am