SEC, state regulators investigate crypto lender Celsius due to account freeze – Bitcoin regulations News

SEC, state regulators investigate crypto lender Celsius due to account freeze – Bitcoin regulations News

The U.S. Securities and Exchange Commission (SEC) and several state regulators are reportedly investigating the decision of crypto lender Celsius Network to freeze payments.

U.S. securities regulators are investigating a freeze in Celsius withdrawals

The U.S. SEC and securities regulators in Alabama, Kentucky, New Jersey, Texas and Washington are investigating the decision of crypto lender Celsius Network to freeze payments, Reuters reported on Thursday.

Texas Enforcement Director Joseph Rotunda explained that officials representing five state securities regulators met Monday morning to begin an investigation following Celsius ’announcement of a freeze on the withdrawal on Sunday night.

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

I am very worried that clients – including many retail investors – may have to access their assets immediately, but they cannot withdraw from their accounts.

“The inability to access their investment can result in significant financial consequences,” he stressed.

Rotunda said he and his team found out about the freezing of Celsius ’accounts from tweets and posts on the company’s blog on Sunday night.

“Due to extreme market conditions, today we announce that Celsius is pausing all payments, exchanges and transfers between accounts”, the company wrote.

Alabama Securities and Exchange Commission Director Joseph Borg told the publication that the SEC was also in communication with Celsius, adding that the crypto lender was answering questions from regulators.

Last year, regulators in a number of states, including Alabama, Kentucky, New Jersey and Texas, issued a Celsius order to suspend and give up lender interest-bearing products, which they said should be registered as a security.

After freezing the retreat, Celsius, reportedly asked for help from Akin Gump Strauss Hauer & Feld, a law firm specializing in financial restructuring. He is also said to be a crypto lender employs Citigroup as a consultant.

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

What do you think of U.S. securities regulators investigating the freezing of Celsius accounts? Let us know in the comments section below.

SEC, state regulators investigate crypto lender Celsius due to account freeze – Bitcoin regulations News

Kevin Helms

A student of Austrian economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in the security of Bitcoin, open source systems, network effects and the crossroads between economics and cryptography.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by the use or reliance on any of the content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”https://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v3.2″;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link

Leave a Reply