What-happened-With-Celsius,-and-How-its-Crypto-Lending-Burned-Out
  • Crypto lending firm Celsius halted withdrawals from its platform.
  • The firm’s action provoked an investigation from security regulators and the SEC.
  • Legal charges from individuals like Ben Armstrong were also added from the firm’s plate.

Celsius was in deeper trouble after State securities regulators in Alabama, Kentucky, New Jersey, Texas, and Washington are set to investigate the crypto lending firm as per Reuters. The investigation was in response to the crypto lending firm’s decision to halt customer’s withdrawals, transfers, and swaps earlier this week. 

The Texas State Securities Board Enforcement Director Joseph Rotunda told Reuters on Thursday that the officials met and began investigating the pausing of withdrawals on Monday morning.

Rotunda pointed out that the probe is a “priority.” In addition, the director said that he was troubled about the firm’s decision because many clients, such as retail investors, are in need to access their assets but couldn’t do so. He opined:

The inability to access their investment may result in significant financial consequences.

Joseph Borg, Director of Alabama Securities Commission, also told Reuters that securities regulators in Alabama, Texas, New Jersey, and Kentucky are probing the situation. Borg added that the US Securities and Exchange Commission was also looking into the Celsius’ situation.

Celsius collects deposits from retail investors and invests them in other crypto market sites that use blockchain technology. The firm guaranteed these investors huge returns up to  18.6% annually.

Alex Mashinsky, CEO of Celsius, said the firm has gathered assets up to $25 billion in October. However, that asset tumbled to around $11.8 billion as of May according to the firm’s website.

Meanwhile, YouTuber Ben Armstrong announced on Twitter that he would file a lawsuit against the firm.

Now, Celsius faces both legal challenges and investigations from State security regulators and SEC.

Disclaimer Read More

Crypto News Land (cryptonewsland.com), also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.

Bryan is a gamer who became genuinely interested in crypto after his initial exposure to Play-to-Earn games like Axie Infinity and Pegaxy. He has basic knowledge of technical analysis and is keeping an eye out for interesting developments in the metaverse and GameFi space.