The Securities and Exchange Commission will most likely to be the first to get paid in the lineup of creditors crypto exchange BlockFi owes money to, Sasha Hodder, founder of Hodder Law, a firm that specializes in crypto law, said Tuesday.
Hodder told CoinDesk TV’s “First Mover” the regulator is “in line, in front of retail creditors.”
“The customers are really at the bottom of the list here,” Hodder said, saying it is far-fetched that they will get their money back.
BlockFi, which has an estimated $257 million cash on hand, owes the SEC $30 million. In February, the crypto lender reached a $50 million settlement with the agency for failing to register the offering and sale of its crypto lending product. It also agreed to pay another $50 million to states that had filed similar charges. About $30 million of the SEC’s fine is unpaid.
Source: BlockFi Most Likely to Pay SEC First, Crypto Lawyer Says