11 different entities (crypto-related)
The California DFPI reported in its October 2022 monthly bulletin that it issued desist and refrain orders against 11 entities for securities violations. These included nine crypto trading entities and one DeFi platform operating without proper securities qualifications. While the specific entity names were not detailed in the source summary, the actions targeted schemes offering unqualified securities through crypto trading and decentralized finance products. The enforcement wave reflects the DFPI's broader campaign against unregistered crypto investment products that may have fintech or banking-adjacent characteristics.
Verified from source: On Sept. 27, 2022, the DFPI issued desist and refrain orders against 11 different entities for violations of California securities laws. Nine solicited funds to trade crypto assets, one solicited crypto for metaverse software, and one claimed to be a DeFi platform — all examples of high yield investment programs (HYIPs).
- State regulators are actively policing crypto-adjacent fintech activities under existing securities frameworks
- Banks and BaaS providers facilitating fiat on-ramps for crypto platforms face indirect regulatory risk from partner enforcement actions
- Sustained enforcement against crypto entities may push compliant operators toward regulated banking partnerships