The SEC settles charges against Linus Financial, a fintech firm based in Tennessee, over sales of an unregistered cryptocurrency lending product.
The SEC had accused the company of selling securities that were not securities.
It converted investors’ cash into crypto assets, pooled those assets, and controlled how the pooled assets were used to generate income for Linuss Financial itself and for investors’ interest payments.
According to the SEC, the company sold as securities, which did not qualify for an exemption from SEC registration.
However, shortly after the regulator announced charges against a similar crypto product last year, Linuses Financial stopped offering its retail crypto lending product and asked investors to withdraw their funds by April 2022.Image credit:
Getty ImagesThe SEC also announces that it will settle charges against Tipton, Tenn.
based Linus financial for selling a trading platform that does not comply with SEC regulations regarding securities.
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