Why not? I could find countless SEC violations that are far worse than this from banking institutions that I guarantee you use on a weekly or monthly basis. Are those scams?

FWIW, no. After the savings and loan crisis a lot of that went away.

Especially not typically fraudulent are the APY yield savings accounts whose deposits are insured.

Also I doubt you could find countless violations outside of (maybe?) insider trading based on MNPI at these institutions, but if you know of them you should report them - whistleblowers can make a lot of money!!

Yes, yes they often are. But I think you'll be hard-pressed to find many examples of legitimate banks having their primary customer offering being declared illegal and forced to stop operation immediately.

Erm, from recent memory: Wells Fargo (3rd largest US bank) had a nice 185 million fine for checking account fraud… https://en.m.wikipedia.org/wiki/Wells_Fargo_account_fraud_sc...

Not saying this justifies BlockFi’s behavior but the incentives for any bank is there!

Yes, that was a fraud. I was personally a victim of it. I will never do business with Wells Fargo again in my lifetime. That doesn't mean I think all banks are fraudulent. In particular I appreciate that there was a regulatory mechanism in place to protect consumers from that fraud.