24/7 Cryptocurrency News

Breaking: Celsius Served With Desist And Refrain Order

According to DFPI, Celsius Network and its CEO misrepresented and omitted the material in the offer to their crypto investors.
Published by
Breaking: Celsius Served With Desist And Refrain Order

Celsius Network, a cryptocurrency lender which filed bankruptcy last month has now landed into another trouble. Department of Financial Protection and Innovation (DFPI) issued an order against the lending platform and its CEO, Alex Mashinsky.

Advertisement

Celsius tricked Crypto investors

According to DFPI, Celsius Network and its CEO misrepresented and omitted the material in the offer to their crypto investors. Specifically, the lender deceived the investors over the risk of depositing digital assets.

The order mentions that Celsius represented gives 80 percent of its revenue to the customers. It added that investors were entitled to the rates fixed by the lending platform.

DFPI regulates and licenses financial services. It also includes state chartered banks, credit unions, mortgage lenders, and more.

The agency discovered that Celsius provided accounts that permitted the users to earn interest on their digital assets after depositing them on the platform. However, it did not qualify those accounts as securities in accordance with California law.

As per the filings, the securities were offered and sold in the issuer transactions. Meanwhile, the department hasn’t provided any permit or qualification to offer or sell them in the state. It adds that any sale transaction of these securities to the public is exempt before April 14, 2022.

Advertisement

Crypto lenders under the govt radar

The digital asset lending platform halted the customer withdrawals from the interest accounts on June 25, 2022. Celsius went on to file for Chapter 11 bankruptcy on July 13. This was in continuation of the crypto market crash that erupted due historic collapse of the TerraUSD.

Meanwhile, many state securities regulators have launched an investigation into this matter. DFPI mentioned that it is investigating many such matters in the country.

On the market side, the Celsius token has surged by more than 110% over the past 30 days. CEL is trading at an average price of $1.89, at the press time. Its 24 hour trading volume has jumped by more than 115% to stand at $22.8 million.

Advertisement

Share
Ashish Kumar

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at ashish@coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

ASTER Deposits Flows Into Binance Wallets Following CZ Endorsement, Listing Incoming?

In a fresh development, multiple ASTER tokens have been sent to Binance spot wallets, following…

October 2, 2025
  • 24/7 Cryptocurrency News

Avalanche Treasury Seals $675M Deal With Mountain Lake to Build $1B AVAX Vehicle

Avalanche Treasury Co., in partnership with Mountain Lake Acquisition Corp., has unveiled a $675 million…

October 2, 2025
  • 24/7 Cryptocurrency News

Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings

Nasdaq-listed VivoPower has stepped up its digital treasury goals with a fresh capital raise aimed…

October 2, 2025
  • 24/7 Cryptocurrency News

Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy

Solana increased in price by 5% to approximately $219 following a $2 billion Solana treasury…

October 2, 2025
  • 24/7 Cryptocurrency News

XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization

The XRP Ledger (XRPL) has launched the Multi-Purpose Token (MPT) standard, designed to simplify and…

October 1, 2025
  • 24/7 Cryptocurrency News

SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown

The U.S. Securities and Exchange Commission has announced plans to streamline its operations amid the…

October 1, 2025