Howard Fischer, Former Officer of the US Securities and Exchange Commission (SEC), claimed that the BlockFi bankruptcy is a lesson for the regulations that should be brought to the cryptocurrency market.
Howard Fischer Wednesday CoinDesk TVof “First Mover”, who went into a liquidation crisis following the bankruptcy of FTX and also filed for bankruptcy. of BlockFi for regulations an example case noted that.
Fischer,The message the SEC would like and try to send is more about how we regulate a very young industry, rather than the sanctity of the SEC agreements.” said. The example of the failure demonstrated by the FTX crypto exchange is that crypto companies use the same “coins” used by traditional and legal finance companies.criteria and management techniques” he said that directly reveals the need to use it.
According to the documents to be received by BlockFi, which was published recently, the institution’s SEC, A debt of $30 million exists. The source of this debt is the SEC’s support to BlockFi in the past period. 50 million dollars due to punishment. BlockFi, which paid 20 million of the debt, could not pay the remaining 30 million.
According to Howard Fischer, the SEC will not be as aggressive in recovering this money as in other cases.