Investigations Begin On Crypto Lender Celsius' Accounts Freeze: Report
ndtv.comUS State securities regulators investigating Celsius accounts freeze: Report
State securities regulators are investigating crypto lender Celsius Network's decision this week to suspend customer redemptions, Joseph Rotunda, enforcement director at the Texas State Securities Board told Reuters on Thursday.
Officials met and began investigating the matter first thing Monday morning, Rotunda said, adding he considered the probe to be a "priority."
Celsius said that due to extreme market conditions, it was pausing withdrawals, swaps and transfers between accounts. The company said that doing so would put it "in a better position to honor, over time, its withdrawal obligations."
"I am very concerned that clients – including many retail investors – may need to immediately access their assets yet are unable to withdraw from their accounts. The inability to access their investment may result in significant financial consequences," he said.
Alabama Securities Commission Director Joseph Borg also told Reuters that Alabama, Texas, New Jersey and Kentucky securities regulators were probing the matter. Celsius has been responsive to questions from the regulators, but that the investigation is in the initial stages, he said.
Borg added that U.S. Securities and Exchange Commission has also been in communication with Celsius.
The SEC declined to comment. The New Jersey and Washington state securities regulators did not immediately respond to requests for comment. A spokesperson for the Kentucky Department of Financial Institutions said it was their policy to not comment on ongoing enforcement actions and investigations.
Celsius and CEO Alex Mashinsky did not immediately respond to a request for comment.
Rotunda said he and his team learned of the
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