[chernevik]

BlockFi has already blown its chance to provide full and reliable information on its own. The complaint here isn't that BlockFi made full disclosure but just forgot to check the S-1 box. The disclosures they have made were _false_. They wouldn't be paying $100mm otherwise.

And it doesn't matter whether BlockFi has paid its loans so far. If misrepresentation of collateralization is penalized only when loans aren't paid, then it can never be penalized at all.

I can easily believe that US accounting practices have problems with crypto; do we even have GAAP for this stuff? And it's easy to complain that SEC filings are complex and time-consuming. But at the end of the day there must be some sort of accounting of how these companies and products work.

I suspect that a lot of crypto products won't meet SEC disclosure requirements because they can't meet any real disclosure requirement. And if that's right, then no, they shouldn't be available.