SEC Charges Linus Financial for Failing to Register Crypto Lending Product

The Securities and Exchange Commission (SEC) announced settled charges against Linus Financial, Inc. for failing to properly register the offers and sales of its crypto-lending product, the Linus Interest Accounts, under federal securities laws. The SEC found that the offers and sales of the accounts did not qualify for any exemption from registration, yet Linus Financial had failed to do so. The company agreed to a cease-and-desist order preventing it from again violating the registration provisions of the Securities Act of 1933. In recognition of Linus Financial’s cooperation with the investigation and prompt corrective action, the SEC chose not to impose civil penalties. The SEC also released an investor bulletin related to crypto asset interest-bearing accounts in order to educate investors.