SEC Warns Investors About Risks from High-Yield Crypto Accounts

The U.S. Securities and Exchange Commission is warning investors about risks associated with accounts that pay clients high interest rates for depositing crypto assets.

Companies offering interest-bearing accounts for digital assets don’t provide the same protections as banks and credit unions, and the deposits aren’t insured, the regulator’s Office of Investor Education and Advocacy said in an investor bulletin Monday. Earlier in the day, the SEC announced that BlockFi Inc. had agreed to pay $100 million to federal and state securities regulators to settle allegations that it illegally offered a product that pays customers high rates to lend out ...