Breaking: Multiple Probes Across U.S. On Over Celsius Withdrawal Halt

Anvesh Reddy
June 16, 2022
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal 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.
celsius

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.

Celsius Probe In Texas

In a latest, a regulatory board in Texas began a probe in this matter. Acording to a Reuters report, the Texas State Securities Board had on Thursday opened an investigation into Celsius’ decision. The move to suspend customer redemptions is being looked at, Joseph Rotunda, director of enforcement, was quoted as saying by Reuters.

In an email statement, the director said the regulatory scanner around freezing of accounts is already underway. He added that the board took the matter as a priority issue.

“The team met and began investigating the freezing of accounts first thing on Monday morning,” Rotunda said in an email, adding he considered the probe to be a “priority.”

‘No Withdrawal Of Investor Assets’

He expressed concern over investors not being able to withdraw their assets immediately. They may need to immediately access their assets yet are unable to withdraw from their accounts, he explained. Rotunda said the inability to access their own investment could “result in significant financial consequences.”

In a latest update from Reuters, four other U.S. states are joining Texas in investigation of Celsius’ move to freeze withdrawals. Also, the Celsius network has been in talks with the SEC over the decision.

The regulatory action on Celsius was always on the cards in the backdrop of what happened with the Terra crash last month. The case of company selling its reserves to maintain liquidity compulsions is the second such instance after Terra.

More trouble is coming Celsius’ way with repect to investor funds. According to a Wall Street Journal report, investors are unlikely to provide more financing to bail out the platform.

Advertisement
coingape google news coingape google news
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.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal 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.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
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.