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

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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.

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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