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The New Jersey Bureau of Securities ordered Jersey City cryptocurrency company BlockFi Inc. to stop offering interest-bearing accounts that have thus far raised $14.7 billion worldwide, acting Attorney General Andrew Bruck said July 20.

Through its affiliates BlockFi Lending LLC and BlockFi Trading LLC, BlockFi has been funding its cryptocurrency lending operations and proprietary trading at least in part through the sale of unregistered securities in violation of the Securities Law, according to the cease and desist order the Bureau issued July 10.

“Our rules are simple: if you sell securities in New Jersey, you need to comply with New Jersey’s securities laws,” Bruck said. “No one gets a free pass simply because they’re operating in the fast-evolving cryptocurrency market. Our Bureau of Securities will be monitoring this issue closely as we work to protect investors.”

Unlike traditional, regulated banks and brokerage firms, cryptocurrency investors’ losses are not insured against or protected by the Federal Deposit Insurance Corp. or Securities Investor Protection Corp. Decentralized finance platforms present a heightened risk of loss to investors, the OAG‘s notice said.

“Cryptocurrency investment products offered and sold on decentralized finance platforms carry significant risks, even beyond those associated with the volatility of cryptocurrency,” said Kaitlin Caruso, acting director of the Division of Consumer Affairs, in a prepared statement. “Platforms like BlockFi may mirror the traditional financial structures that we know and trust, but in reality, they can leave investors extremely vulnerable.”

BlockFi allows investors to purchase a BlockFi Interest Account by depositing cryptocurrencies such as Bitcoin and Ethereum into accounts at BlockFi. BlockFi then pools these deposits together to fund its cryptocurrency lending operations and proprietary trading. BlockFi then promises investors interest, paid monthly in cryptocurrency, in exchange for investing in the BlockFi Interest Accounts.

Despite advertising on its website that BlockFi is a “US regulated” entity that “play(s) by the rules,” BlockFi does not disclose to investors that its BlockFi Interest Accounts are not registered with the Bureau or any other securities regulator, or exempt from registration, the Bureau of Securities order found.

The website advises dissatisfied investors to contact BlockFi’s Customer Service online before contacting their local jurisdiction to file a complaint.

“When it comes to cryptocurrency financial products, we urge investors to look beyond the promise of heightened returns and approach them with extreme caution,” said Bureau Chief Christopher Gerold in a prepared statement. “As the online cryptocurrency-related investment market continues to evolve, the Bureau will continue to enforce the securities laws to safeguard the public.”