Crypto lawyer sashahodler said the SEC will get paid before retail traders following the bankruptcy filing of BlockFi. _franvela reports
, a crypto exchange that collapsed this month and filed for Chapter 11 bankruptcy itself on Nov. 11.
On Tuesday, Hodder said the SEC’s fine of BlockFi could also be a message for the crypto industry more broadly.“What the SEC is trying to say is that all of this lending activity should be considered a debt security,” Hodder said. “And if it was a security, then it would have to be held on a platform that met certain regulatory standards.”
Still, the falls of BlockFi and FTX may have been prevented “if the SEC had regulated harder against these companies,” Hodder said. “You'd think a $100 million fine would be a strong signal, but it didn't stop the other companies that were already engaged in this activity from continuing on for another few months,” she said.
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