Crypto lending platform BlockFi is preparing to close a new round of financing with a valuation of $1 billion, citing people familiar with the matter.

Founded in 2017, the centralized platform allows investors to borrow money and earn passive income from loans in exchange for the security of their crypto assets.

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

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

Bain Capital Ventures will lead the new round, according to The Block sources. Other contributors include DST and Valar.

In July 2021, BlockFi faced requests from state-level financial regulators. The New Jersey Securities Bureau has banned the company from opening new BIA accounts for residents.

Later, the Alabama regulator accused the company of selling unregistered securities. He soon learned about the controls of BlockFi activities in the state of Vermont.

Recall that in February, Bloomberg reported that BlockFi will pay US regulators a $100 million fine.