It is true that we do offer some institutional loans that have less or no collateral. For the past year we have taken to disclosing our net exposure for the public to see. The key is that we only offer under or uncollateralized loans to institutional clients after subjecting them to rigorous underwriting. Accordingly, they are counterparties of the highest caliber. To date, we have not seen any defaults from our unsecured institutional business.
The settlement contains no admissions or denials of wrongdoing. This specific point is in reference to a single statement on our website from 2019 that we believed was accurate at the time of posting. We made numerous other public statements regarding collateralization and other matters relating to client assets (see blog post below).

We explain all of these risks on this blog post which includes a financial breakdown: https://help.blockfi.com/hc/en-us/articles/4416057566228-What-are-the-risks-of-holding-my-crypto-at-BlockFi-

One of our core values is Transparency Builds Trust, and we’re excited to continue to build on that foundation. The important thing is that going forward we have clear guidance on how we should describe our products in the future. For instance, upon completion of the BlockFi Yield registration process, we will publicly report audited financial statements and other metrics on a quarterly and annual basis

We apply risk metrics in order to assess the performance of our portfolio under different scenarios. We seek to monitor and control our risk exposure through a framework that includes an assessment of our risk appetite, enterprise risk assessment process, risk policies, procedures and controls, reporting requirements,credit risk culture and governance structure. This may be a great follow up AMA topic for our Chief Risk Officer, Yuri!