Case summary
What happened
Linus Financial began offering Linus Interest Accounts in March 2020. Customers deposited U.S. dollars, which Linus converted into USDC and pooled for deployment into DeFi liquidity pools or direct loans to institutional borrowers. After the SEC's BlockFi action, Linus stopped accepting new investors on 25 March 2022, asked existing investors to withdraw by 22 April 2022, stopped paying interest on that date, and ultimately returned all investor funds. In September 2023 the SEC entered a settled cease-and-desist order for the unregistered offer and sale of the product, while declining to impose a civil penalty because of Linus's cooperation and prompt remediation.
Customer result
Customer outcome
Full repayment
Linus asked investors to withdraw by 22 April 2022 and stopped paying interest on that date. The SEC later confirmed that all investor funds had been claimed. The exact date of the final withdrawal is not stated in the public order.
- Estimated recovery
- 100% of investor funds claimed according to the SEC order
- Repayment started
- 2022-03-25
- Repayment completed
- —
- Confidence
- High
Asset treatment
Terms risk
Platform-owned
This classification follows the SEC's description of the product structure and applies to the Linus Interest Accounts covered by the order.
- Affected product
- Linus Interest Accounts
- Confidence
- High
The SEC order states that Linus took complete control of investor assets, pooled them, retained ownership and control over the borrowed assets, and decided how much to hold, lend, and invest.
Known unknowns
Uncertainty
The record covers the Linus Interest Accounts product and associated public crypto business. The SEC order describes the public website as inactive and confirms product closure and repayment; it does not establish that every corporate activity of Linus Financial ended on the same date.
Chronology
Historical record
Linus Interest Accounts begin operating
Linus Financial began offering interest-bearing accounts to U.S. investors, accepting dollars and converting them into USDC for pooled deployment through DeFi liquidity pools and institutional lending.
The SEC order identifies 19 March 2020 as the approximate start date.
Linus stops accepting new investors
Linus voluntarily ceased offering new Linus Interest Accounts and instructed existing customers to withdraw their funds by 22 April 2022.
The action followed the SEC's BlockFi settlement and communications with SEC staff.
Linus Interest Accounts cease operations
Linus stopped paying interest on remaining account balances and ended the public interest-account product after asking customers to withdraw.
The SEC order states that all investor funds were subsequently claimed.
SEC confirms all investor funds were claimed
The SEC's settled order stated that all investor funds from the Linus Interest Accounts had been claimed following the 2022 wind-down.
The exact date of the final customer withdrawal is not stated; this event uses the order date as the date the completed outcome was formally confirmed.
SEC enters cease-and-desist order against Linus Financial
The SEC settled charges that Linus Financial offered and sold the Linus Interest Accounts without registration, while declining to impose a civil penalty because of cooperation and prompt remedial action.
Linus consented to the order without admitting or denying the findings, apart from jurisdiction and subject matter.
Source record
Evidence dossier
Filter by claim, reliability, source type, and whether evidence is linked to a specific event.
customer outcome
2 sourcesSEC order confirms all Linus investor funds were claimed
U.S. Securities and Exchange Commission · 2023-09-07
Primary source for the completed customer repayment outcome.
SEC press release confirms withdrawal of all investor funds
U.S. Securities and Exchange Commission · 2023-09-07
Official summary stating that all investor funds had been withdrawn.
end date
2 sourcesSEC order records Linus product closure
U.S. Securities and Exchange Commission · 2023-09-07
Primary source for the 22 April 2022 end of interest accrual and public product operations.
SEC press release confirms Linus product closure
U.S. Securities and Exchange Commission · 2023-09-07
Official summary confirming that existing investors were asked to withdraw by late April 2022.
Event
6 sourcesSEC order concerning Linus Financial, Inc.
U.S. Securities and Exchange Commission · 2023-09-07
Primary order describing the March 2020 launch, product structure, pooled asset deployment, closure, repayment, and registration violations.
Linus Financial agrees to settle SEC charges
U.S. Securities and Exchange Commission · 2023-09-07
Official SEC summary confirming the product launch and operating model.
SEC order records voluntary halt to new Linus accounts
U.S. Securities and Exchange Commission · 2023-09-07
Primary source for the 25 March 2022 halt and withdrawal instruction.
SEC press release describes Linus remediation
U.S. Securities and Exchange Commission · 2023-09-07
Official summary of the voluntary product wind-down and customer withdrawal request.
SEC cease-and-desist order against Linus Financial
U.S. Securities and Exchange Commission · 2023-09-07
Primary administrative order establishing the settled registration violations and sanction.
SEC announces Linus Financial settlement
U.S. Securities and Exchange Commission · 2023-09-07
Official press release explaining the settlement and the decision not to impose a civil penalty.
url history
1 sourcesLinus Financial website archive captures
Internet Archive
Archived customer-facing pages preserve the historical website and product presentation.
No evidence records match the current filters.
Comparative records