SEC started investigation into Voyager, Gemini, and Celsius Network

The regulator is interested in cryptocurrency deposits that companies work with

27.01.2022 - 13:00

108

1 min

What’s new? The US Securities and Exchange Commission (SEC) has launched an investigation into the activities of the Voyager, Gemini, and Celsius Network lending service providers. The agency wants to find out whether the organizations' crypto services fall under the Securities Act. This is reported by Bloomberg, citing its own sources.

Material on the Bloomberg website

What is known about the investigation? The SEC is going to investigate the aforementioned companies to see if they are legally providing interest rates on cryptocurrency deposits. The regulator treats this product like securities that require registration.

The SEC’s concern is that the rates offered by the companies are ahead of bank offers. According to Bloomberg’s sources, organizations offer rates of between 3% and 18% per annum on tokens. The financial institutions offer less than 0,1% for holding on the account.

How did the companies comment on the SEC’s actions? Gemini has officially stated that the regulator has contacted the organization. The representatives of other companies have also confirmed their interaction with the regulator. However, until formal charges have been made, they declined to comment on the progress of the investigation.

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