The first-ever such case came as the Securities and Exchange Commission (SEC) looks to establish regulatory authority over digital currency services, treating them more like investment operations than a form of money.

“This is the first such case involving crypto lending platforms,” SEC chair Gary Gensler said in a release.

“Today’s agreement makes it clear that cryptocurrency markets must comply with securities laws.”

Gensler has stepped up scrutiny of the cryptocurrency market since joining the SEC less than a year ago.

According to a study by Cornerstone Research, the penalty is the highest since it began tracking lawsuits in the sector in 2013.

For about two years, BlockFi has provided a service in which people lend it crypto assets in exchange for monthly interest payments, according to the SEC order.

The crypto-lending scheme attracted some 600,000 investors, according to the order.

Regulators determined in a “first-of-its-kind action” that the service known as BlockFi Interest Accounts were not registered with the SEC, as required.

BlockFi agreed to pay US$50 million to the SEC, according to the order.

The company also agreed to pay another US$50 million to a group of 32 US states that filed lawsuits calling for it to stop offering the accounts, which had interest rates as high as 8%, according to regulators.

Without admitting any wrongdoing, BlockFi agreed to stop selling the interest accounts in the US and to abide by SEC registration and anti-fraud rules, according to regulators.