Celsius Will be Investigated By The Securities Regulatory Authority Of 5 States In The US
Securities regulators in five US states are reportedly investigating crypto lender Celsisus over its decision to suspend customer withdrawals this week.
Celsius faces investigation after customer’s announcement to stop trading
According to a Reuters report, the Texas Securities Commission’s chief enforcement officer, Joseph Rotunda, revealed that officials in five US states including Texas, Alabama, Kentucky, New Jersey and Washington are preparing to move forward investigation of Celsisus. He stated the following:
“I am concerned for many clients, especially retail investors, because they cannot withdraw money from their accounts on Celsius. The inability to access an investment can have significant financial consequences.”
Rotunda confirmed that regulators from the five states got together this week to begin an investigation into company, which froze customer accounts during a liquidity crisis stemming from the loss of stETH peg exposes Celsius to illiquidity.
As a result, in a blog post on June 13, Celsius told its more than 1.7 million customers that it would be suspending crypto withdrawals, swaps and transfers between accounts, citing harsh market conditions.
On the other hand, Reuters also added that Alabama Securities Commission Director Joseph Borg shared that it had answered questions from the regulators of Alabama, Texas, New Jersey and Kentucky, but the investigation was still only is in the early stages. In addition, Borg also revealed that the US Securities and Exchange Commission (SEC) also contacted Celsius, but the SEC declined to comment to confirm this information.
But on June 15, Celsius CEO Alex Mashinsky broke his three-day streak of silence and took to Twitter to announce his company’s focus on addressing customer concerns and thank you very much for it. has been heard from a lot of users.
While CEO Alex Mashinsky struck an upbeat tone on social media, Celsius has begun hiring his own lawyer to prepare for the worst-case scenario of bankruptcy.
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