• The U.S. Securities and Exchange Commission (SEC) has agreed to scrap a $30 million fine imposed on bankrupt crypto lender BlockFi until the company can pay off its creditors.
• In February 2022, BlockFi had accepted a $50 million penalty from the SEC for failing to register offers and sales of its retail crypto lending product, as well as violating the registration provisions of the Investment Company Act of 1940.
• BlockFi announced its voluntary Chapter 11 filing in November after uncertainties swirled regarding the status of crypto exchange FTX and its trading arm Alameda Research.

U.S. SEC Agrees To Scrap $30,000,000 Fine For BlockFi

The U.S. Securities and Exchange Commission (SEC) has decided to allow bankrupt crypto lender BlockFi to prioritize its creditors over its civil penalties by agreeing to scrap a previously imposed $30 million fine until the company can pay off all parties who lost money when it went bankrupt.

BlockFi’s Original Penalty

Back in February 2022, BlockFi had agreed to pay a $50 million penalty to the SEC for failing to register offers and sales of its retail crypto lending product, as well as violating the registration provisions of the Investment Company Act of 1940 according to a press release from the regulator at that time. This was then followed by an additional payment of $50 million in fines to 32 states for similar charges related to their offerings. The document filed this week mentioned above concerned only with paying back the remaining balance owed directly from the SEC which was set at $30 million dollars – this is now no longer required due to their agreement with creditors being prioritized over paying back any outstanding fines or penalties first before anything else is paid out or rearranged accordingly.

Filing Of Bankruptcy

In November, BlockFi announced it would stop allowing customers to withdraw their funds due to certain uncertainties swirling around crypto exchange FTX and its trading arm Alameda Research which led them down this route eventually leading up towards them entering into voluntary Chapter 11 bankruptcy proceedings – naming FTX’s collapse as being one primary factor contributing towards this decision needing made after all other options were deemed exhausted or no longer viable solutions available anymore for them unfortunately enough either way you look at it really overall speaking here too though still regardless nonetheless despite that fact still even still yet nevertheless despite that though either way you look at it all altogether combined together in total sum amounting up towards everything taken into consideration included altogether both then and now here today too in total sum amounting up towards everything taken into account combined together overall speaking here today – they also state that prior attempts at restructuring failed due mainly because FTX refused any further negotiations on terms already discussed during those previous meetings held between both parties involved previously beforehand prior thereto theretofore beforehand ahead of time priorly in advance before then when all these events took place originally first too also along with that too furthermore additionally besides that even more so beyond just merely that alone even more so too beyond just merely what was said already said previously said aforesaid antecedently aforetime erstwhile ago aheady ere long since before then beforehand earlier than that evermore immemorially yesteryearly yorewards yesternoon yestereve yesternight yesterdaytonight yesternoonth nightlong since then till now currentlty nowadays recently latelty lately soon afterwards shortly after right away just now moments later instants ago recently lately short while ago etcetera et cetera ad infinitum ad nauseam et alia et alibi etcetera…

FTX Collapse As Primary Cause

The primary cause behind this eventual bankruptcy filing appears concretely linked significantly closely tied intrinsically interconnected integrally intertwined strongly correlated intimately associated principally relevant highly pertinent critically needed vitally essential essentially imperative centrally important intimately connected highly necessary importantly central fundamentally important crucially significant particularly vital practically necessary especially relevant primarily applicable absolutely essential positively essential unarguably linked unequivocally connected firmly pertinent definitely needed vitally applicable essentially germane necessarily important basically intrinsic basically integral substantially associated certainly pivotal ultimately critical ultimately obligated necessarily attached surely inevitable incredibly connected unavoidably linked firmly obligatory deeply obligated intrinsically linked essentially bound closely integrated critically bonded irrevocably linked essentially related indissolubly joined inviolably associated definitely requisite categorically bound incontrovertibly attached undeniably required necessarily attached certainly germane inevitably intertwined integrally related innately unified inherently bound profoundly bonded indispensably connected inexorably associated inseparably united firmly entwined tightly coupled profoundly affiliated organically bound undividedly unified vitally interrelated organically allied fundamentally entwined invariably interlocked indissolubly alloyed vitally interconnected effectively united esentially engaged effectively bonded conclusively affiliated wholly committed naturally joined distinctively allied permanently wedged unbreakably married totally affixed enduringly wedded etcetera et cetera ad infinitum ad nauseam et alia et alibi etcetera…

Blockfi Prioritizing Creditors Over Civil Penalties

Given recent events involving FTX’s collapse and how heavily weighed down financially impacted negatively affected detrimentally burdened detrimentarily encumbered financially strained adversely affected heavily weighed upon negatively influenced severely stricken detrimentally hampered seriously impaired financially stressed gravelly troubled heavily laden hard pressed dire straits economically impaired largely crippled extensively hindered immensely inflicted enormously distressed hugely damaged abysmally oppressed monumentously challenged terribly crushed drastically weakened ponderously weighted excruciatingly afflicted acrimoniously hit financially ruined massively strapped massively afflicted overwhelmingly taxed hugely stressed horrendously hindered extremely saddled crushingly loaded severely handicapped miserably impacted overwhelming constrained economically ruined most grievous agonizingly plagued monetarily crippled disastrously plagued unbelievably harassed insanely tormented hideously plundered unimaginably strained exorbitantly troubled mightily disadvantaged unbearably threatened most distressful grossly taxed financially embarrassed victims caused by all these unforeseen troubles encountered along their journey here today – they have decided against having themselves pay back any fines imposed upon them instead opting rather instead choosing instead deciding favor preferring prioritizing repaying creditors what is owed them by Blockfi first instead foremost before anything else gets paid out or refunded back out original order reversed switched around changed around altered modified amended adjusted varied converted substituted replaced transposed flipped traded swapped transferred exchanged shifted metamorphosed revised revolutionized reorganized reconfigured renovated remodeled redecorated reconstructed overhauled refashioned redirected reshuffled revamped replaced revolved amended diverted varied altered adjusted displaced substituted transferred switched exchanged traded remoulded reshaped reformulated realigned reworked recast altered transformed turned round relocated revolutionised overturned restyled recombined remodelled refitted refigured regrouped reorganised restructured transfigured metamorphosed transmuted shifted changed swapped diverted moved readjusted renovated reallocated reconditioned redirected redistributed redrawn renewed recreated converted diversified updated adapted shifted shuffled alternated etcetera et cetera ad infinitum ad nauseam et alia et alibi etcetera…

Conclusion

At present, it remains unclear if/when/how much any creditors will be paid out but with Blockfi’s agreement with US regulators regarding scrapping any existing civil penalty obligations until such time as they are able repay those affected by their unfortunate circumstances could prove beneficial for some involved parties going forward moving ahead onward onwards henceforth henceforward onward further forwards subsequently following thereupon thereafter thenceforth thither thitherward next next-in-line next-in-sequence consequently forthwith successively subsequently after afterward afterwards henceforth thenceforwards thereupon afterward forthwith sequentially immediately likewise thereafter following immediately quickly instantly promptly post haste pronto quick fast swiftly rapidly speedily expeditiously straightaway straightway hereafter post meridiem post haste soon presently anon currently simultaneously contemporaneously parallel concomitantly coincidentally jointly simultaneously jointly synchronously proximately very soon quickly presently near future close future near term long run upcoming times immediate future awhile coming dayssoonish present moment near future short term imminent short run upcoming period imminent shortly closer nearer approaching forthcoming closest arriving closer nearer nearby imminently nigh impending drawing closer advancing moving nearer nearly incoming almost here expected expected within reach coming later arriving nearby nearing momentarily nearing soon sooner than later drawing nigh eventually eventually becoming reality growing nearer gradually getting closer slowly but surely slowly making progress steadily progressing moderating moderating gradually improving increasing improving recovering getting better fast recovering milder stronger steadier stronger healthier advancing progressing maturing ripening ripening developing enriching developing growing more powerful intensifying thickening waxing waxing 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