Media: Investors trim BlockFi valuation from $5 billion to $1 billion.

The crypto lending platform BlockFi is preparing to close a new funding round at a $1 billion valuation. The Block reports, citing informed sources.

Founded in 2017, the centralized platform allows investors to borrow funds secured by their own crypto assets, as well as earn passive income on lent coins.

In 2021, the firm raised $350 million in a Series D round at a $3 billion valuation. At the time, BlockFi was showing strong growth metrics: monthly turnover of more than $15 billion and over 225,000 users, including institutional clients.

A few months later it emerged that the company was in talks with investors to raise funds in a Series E round at a valuation of around $5 billion.

According to The Block’s sources, the new round will be led by Bain Capital Ventures. Other participants include: DST and Valar.

In July 2021, BlockFi faced state-level regulatory claims. The New Jersey Bureau of Securities forbade the company from opening new BIA accounts for its residents.

Subsequently, the Alabama regulator alleged the company of selling unregistered securities. Soon it emerged that BlockFi was being investigated in Vermont.

In February, Bloomberg reported that BlockFi would pay a $100 million fine to U.S. regulators.

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