Regulators in five US states launched investigation into Celsius
Representatives of the agencies identified the situation with the freezing of DeFi platform customers’ funds as a priority to be investigated
17.06.2022 - 11:05
899
2 min
0
What’s new? On June 13, state securities regulators in Alabama, Kentucky, New Jersey, Texas, and Washington launched an investigation into the suspension of customer withdrawals by Celsius, a DeFi lending platform. The Texas agency added that it considered investigating this situation a priority because the lack of users’ ability to get instant access to their assets may lead to “significant financial consequences,” Reuters reports.
Details of the Celsius situation. On June 13, Celsius suspended withdrawals, exchanges, and transfers between accounts citing “extreme market conditions.” On the same day, crypto lender Nexo announced its intention to buy Celsius’s assets, primarily their collateralized loan portfolio. Celsius later hired experts from the financial conglomerate Citigroup to advise on finding new sources of financing, as well as lawyers from Akin Gump to conduct restructuring.
The Alabama Securities Commission noted that Celsius is responding to regulatory requests, but that the investigation is still in the initial stage. The US Federal Securities and Exchange Commission (SEC) has also reportedly contacted representatives of the platform, but the agency declined to comment to reporters.
In September, regulators in Kentucky, New Jersey, and Texas issued a cease-and-desist order to Celsius, arguing that its investment products must be registered as securities. In February, the SEC and regulators of the same states fined BlockFi $100 million for failing to register its crypto lending product.
Useful material?
Market
Analysts note that from 2024 to 2030, tokens worth $155 billion will be unlocked
May 17, 2024
Technologies
The new mechanism has already made it possible to calculate over tens of millions of fraudulent addresses
May 16, 2024
Incidents
The amount of damage amounted to $25 million in cryptocurrencies
May 16, 2024
Market
FTX customers will be compensated in cash, unlike Mt. Gox and Gemini customers who will receive cryptocurrencies
May 16, 2024
Technologies
It is available to crypto wallet users worldwide as an additional feature
May 15, 2024
Market
The ex-official known for his initiatives to explore the potential of blockchain in the financial system has joined the board of directors of a fintech company
May 14, 2024