{"id":5917,"date":"2022-07-25T15:45:12","date_gmt":"2022-07-25T15:45:12","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=5917"},"modified":"2022-07-25T15:45:13","modified_gmt":"2022-07-25T15:45:13","slug":"us-state-regulator-warns-about-crypto-interest-bearing-accounts-amid-market-downturn","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=5917","title":{"rendered":"US State Regulator Warns About Crypto Interest-Bearing Accounts Amid Market Downturn"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>The financial regulator of the U.S. state of Arizona has warned investors about crypto interest-bearing accounts. \u201cSome companies may materially overstate the degree to which their collateral practices protect their ability to pay investors the stated return,\u201d the regulator said.<\/strong><\/p>\n<h2>State Regulator Warns About Crypto Interest-Bearing Accounts<\/h2>\n<p>The Arizona Corporation Commission issued an investor alert this week, warning about \u201cdigital asset financial services companies that offer interest-bearing crypto-asset accounts.\u201d<\/p>\n<p>The regulator explained: \u201cWith crypto-interest accounts, customers lend crypto assets to the company and, in exchange, receive interest paid in crypto assets.\u201d The Arizona Corporation Commission elaborated:<\/p>\n<p>However, due to the crypto market downturn, highlighted by the recent bankruptcy filings of Celsius Network and Voyager Digital, some companies are preventing account holders from withdrawing from and transferring between their accounts.<\/p>\n<p>The securities regulator cautioned investors that \u201csome crypto-interest account providers may not have adequately disclosed the risks that customers face when they deposit crypto assets onto these platforms,\u201d adding:<\/p>\n<p>Some companies may materially overstate the degree to which their collateral practices protect their ability to pay investors the stated return.<\/p>\n<p>The commission recently took action against Blockfi Lending LLC and found that certain crypto-interest accounts were unregistered securities.<\/p>\n<p>The regulator revealed that it is investigating whether other crypto-interest account providers are violating laws under its jurisdiction.<\/p>\n<p>This month, crypto lenders Celsius Network and Voyager Digital filed for bankruptcy protection. The Department of Financial Regulation of the U.S. State of Vermont said it \u201cbelieves Celsius is deeply insolvent and lacks the assets and liquidity to honor its obligations to account holders and other creditors.\u201d<\/p>\n<p>Voyager CEO Stephen Ehrlich explained why his company filed for bankruptcy: \u201cThe prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital (\u20183AC\u2019) on a loan from the company\u2019s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now.\u201d<\/p>\n<p><em><strong>What do you think about the warning by the AZ financial regulator? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/us-state-regulator-warns-about-crypto-interest-bearing-accounts-amid-market-downturn\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The financial regulator of the U.S. state of Arizona has warned investors about crypto interest-bearing accounts. \u201cSome companies may materially overstate the degree to which their collateral practices protect their ability to pay investors the stated return,\u201d the regulator said. State Regulator Warns About Crypto Interest-Bearing Accounts The Arizona Corporation Commission issued an investor alert [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5918,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-5917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5917"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5917\/revisions"}],"predecessor-version":[{"id":5919,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5917\/revisions\/5919"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/5918"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}