Crypto Catch: US crypto lending platform investigated by regulators

Image Source: © Maxsafaniuk | Megapixl.com

Highlights

  • Crypto lending platform Celsius is reportedly being investigated by regulators in four different US states
  • Celsius announced, on Monday, it would halt customers withdrawals in an effort to protect its solvency
  • The investigation of Celsius comes amidst reports that investors who recently committed to a funding round were unlikely to save the struggling company

Crypto lending platform Celsius is reportedly being investigated by regulators in four different US states, following its recent decision to halt customer withdrawals in the wake of this week’s crypto market crash.

The popular crypto lender is being investigated by state securities regulators from Texas, Alabama, Kentucky and New Jersey as it faces liquidity issues following this week’s crisis.

Texas Director of Enforcement Joseph Rotunda told Reuters he considers the state security probe “a priority” and that regulators began investing the company on Monday morning, following reports of account freezing.

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Meanwhile, Alabama Securities Commission Director Joseph Borg said that the Securities and Exchange Commission – the SEC- was also in dialogue with Celsius and that the lending platform had so far been cooperative with investigators.

Celsius announced, on Monday, it would halt customers withdrawals in an effort to protect its solvency.

The investigation of Celsius comes amidst reports that investors who recently committed to a funding round were unlikely to save the struggling company.

Currently Bitcoin sits at US$20,365 after falling ten per cent overnight. Meanwhile, Ethereum also fell 13 per cent to US$1,064.

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Data Source: CoinMarketCap.com, based on top 100 cryptos. 

Note: Growth from the 24 hours prior to 12:30pm AEDT 

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