SEC, State Regulators Probe Crypto Lender Celsius Over Accounts Freeze

The U.S. Securities and Exchange Commission (SEC) and respective authorities regulators are reportedly investigating the determination by crypto lender Celsius Network to frost withdrawals.

U.S. Securities Regulators Investigate Celsius’ Withdrawal Freeze

The U.S. SEC and securities regulators successful Alabama, Kentucky, New Jersey, Texas, and Washington are investigating the determination by crypto lender Celsius Network to frost withdrawals, Reuters reported Thursday.

Texas’ manager of enforcement Joseph Rotunda explained that officials representing the 5 authorities securities regulators met Monday greeting to statesman the probe pursuing Celsius’ withdrawal frost announcement Sunday night.

Noting that the probe is simply a “priority,” Rotunda said:

I americium precise acrophobic that clients – including galore retail investors – whitethorn request to instantly entree their assets yet are incapable to retreat from their accounts.

“The inability to entree their concern whitethorn effect successful important fiscal consequences,” helium stressed.

Rotunda said helium and his squad learned astir Celsius’ accounts frost from the company’s tweet and blog station Sunday night.

“Due to utmost marketplace conditions, contiguous we are announcing that Celsius is pausing each withdrawals, swaps, and transfers betwixt accounts,” the institution wrote.

Alabama Securities Commission Director Joseph Borg told the work that the SEC has besides been successful connection with Celsius, adding that the crypto lender has been responsive to questions from the regulators.

Last year, regulators successful a fig of states, including Alabama, Kentucky, New Jersey, and Texas deed Celsius with a cease and desist bid implicit the lender’s interest-bearing products, which they said should beryllium registered arsenic a security.

After freezing withdrawals, Celsius reportedly sought assistance from Akin Gump Strauss Hauer & Feld, a instrumentality steadfast that specializes successful fiscal restructuring. The crypto lender is besides reportedly hiring Citigroup arsenic an advisor.

Moreover, Ben Armstrong, aka Bit Boy, announced a class-action suit against Celsius and CEO Alex Mashinsky connected Wednesday via Twitter.

What bash you deliberation astir U.S. securities regulators investigating Celsius’ accounts freeze? Let america cognize successful the comments conception below.