The U.S. Securities and Exchange Commission has agreed to postpone the payment of a $30-million fine from bankrupt crypto lender BlockFi until creditors are paid back. The amount represents the balance of a $50-million settlement with the regulator from February 2022, CoinTelegraph.com reported. According to June 22 court filings, the SEC will forgo the amount owed by BlockFi to “maximize” and avoid delays in funds’ distribution to investors “until payment in full of all other Allowed Claims.” The document stated, “The Commission has agreed to forego participating in any distributions under the Plan or requiring any cash reserve in connection with such distributions.” In February 2022, the SEC announced actions against the crypto lending company over its failure to register its high-yield interest accounts as securities. BlockFi agreed to pay $50 million to the regulator as part of the settlement and another $50 million to 32 U.S. states filing similar complaints. According to court documents, the SEC was at the top of BlockFi creditor’s list, along with West Realm Shires Services Inc. (doing business as FTX US). BlockFi filed for chapter 11 bankruptcy protection in late November after the FTX crisis raised questions about its financial health. According to its bankruptcy filing, BlockFi had $256.9 million in liquidity at that time.
