Crypto Lender Celsius Under Investigation by Several US State Regulators

Securities regulators in a number of U.S. states are looking into crypto lender Celsius Network's decision to pause customer redemptions, Reuters reported Thursday (June 16). According to Joseph Rotunda, enforcement director at the Texas State Securities Board, state regulators from Alabama, Kentucky, New Jersey, Texas and Washington are looking into this.

Timeline of Celsius

Crypto lending and interest-bearing account service Celsius Network (CRYPTO: CEL) halted withdrawals as blockchain analysis suggested the company's investment choices caused a liquidity crisis. Now employees may be facing legal consequences after committing fraud in an attempt to contain the firm's troubles, according to the analysts who blew the whistle on liquidity crisis concerns.

According to “two people familiar with the matter,” the cryptocurrency lending company Celsius is working with the financial giant Citigroup in order to get advice on how to handle the firm's financial hardship. The sources note that Citigroup was hired by Celsius to help the company find “potential financing.” Sources Say Celsius Is Looking for

An embattled crypto lending platform is contemplating a financial restructuring plan in the wake of its native token dropping by 99% from its all-time high. In a new report, the Wall Street Journal reveals Celsius Network (CEL) has engaged the services of the Akin Gump Strauss Hauer & Feld law firm to explore its options The post Celsius Undergoing Restructuring Process With Attorneys To Address Potential Insolvency: Report appeared first on The Daily Hodl.

Following an announcement earlier this week to halt user withdrawals, the lending platform is attracting scrutiny from authorities. On Tuesday, Celsius Networks paused withdrawals on its platform stating the move was in the interest of the users.

Major investors of crypto lending platform Celsius are "unlikely" to provide additional financial support, the Wall Street Journal reports. The post Celsius investors ‘unlikely' to provide bail-out funds: WSJ appeared first on The Block.

The report states that Texas has labelled its investigation a 'priority.' The post Texas securities regulator opens investigation into Celsius: Reuters appeared first on The Block.

Celsius' problems look like they have only just begun but there is a lot of data that shows that the current insolvency had been a long one in the making. As investors gnash their teeth about not seeing the issues fast enough, we take a look at these signs and why they may have been

The Texas State Securities Board has opened an investigation into crypto lender Celsius Network's decision this week to suspend customer redemptions, its director of enforcement Joseph Rotunda told Reuters on Thursday.

Quick Take In this weekly series, we dive into some of the most interesting data and developments across the Layer 1 blockchain landscape, from DeFi and bridges to network activity and funding Underlying risks in the crypto economy are being exposed at an alarming rate as on-chain activities by troubled lender Celsius and the hedge fund Three Arrows Capital reveal the cascading effects of forced selling in the Ethereum ecosystem and beyond As valuations in the market continue to shrink, users are starting to look cross-chain in their search for the best sources of on-chain liquidity Meanwhile, TRON faces a major test with the depegging of USDD from USD

Liquidity troubles at crypto lending platform Celsius Network, which have left its 1.7 million customers unable to redeem their assets, will increase U.S. regulatory pressure on the sector, which was already on the defensive amid other crises this year.