California Regulators Are Investigating Firms That Offer Crypto Interest Accounts

The California Department of Financial Protection and Innovation (DFPI) says in its latest consumer alert that it's investigating multiple companies across the US that offer customers crypto interest accounts. Some of these companies are preventing customers from withdrawing from and transferring between their accounts. A crypto-interest account allows customers to lend crypto assets to the company and, in exchange, receive interest paid in crypto assets. DFPI says that many crypto-interest account providers may not have adequately disclosed risks customers face when they deposit crypto assets onto these platforms.