BlockFi is bringing back its popular high yield crypto savings account almost nine months after the SEC fined the fintech, thanks to a loophole. And this time it will only target America's wealthiest investors.
The firm said only U.S. accredited investor clients – about 13% of households – would be able to earn interest through BlockFi Yield, which offers rates on 15 different cryptocurrencies. The firm described the yields as "competitive."
BlockFi is offering the product through an exemption "from the registration requirements of the Securities Act of 1933."
The move comes after BlockFi said that it would register Yield—formerly known as the BlockFi Interest Account—with the SEC, which in February slapped the fintech with a $100 million fine. Prior to the SEC's penalty, BlockFi made headlines for various state-wide investigations into whether its offering was tantamount to a security.
BlockFi was among the several lending firms hobbled by the crypto credit crisis that sent rivals including Celsius and Voyager into bankruptcy. Both firms also offered interest account-like products. While BlockFi was able to navigate the credit crunch without closing access to withdrawals, it did enter into an acquisition agreement with crypto exchange operator FTX for capital support.
BlockFi co-founder Flori Marquez told The Block the firm has "has always prioritized protecting client funds."
"While the events of the summer were a true test of our risk protocols, we are confident in our prudent and proactive risk management framework as we lead the industry forward," she said. "We are committed to education and transparency and have proactively taken steps to strengthen our risk position by increasing our risk management disclosures and educational content."