Celsius is Facing Investigations by Multiple Agencies after Freezing Withdrawals

Celsius, a crypto lending company freezed the withdrawals of customers. This has created a question towards the company. Multiple states are investigating the matter. A report by Reuters stated that state security boards in Alabama, Kentucky, New Jersey, Texas and Washington have launched probes into Celsius.

Enforcement director of Texas State Securities Board, Joseph Rotunda stated in front Reuters that, “I am very concerned that clients – including many retail investors – may need to immediately access their assets yet are unable to withdraw from their accounts. The inability to access their investment may result in significant financial consequences,”


The statements on Celsius by Investigation Agencies


The New Jersey and Washington state securities regulators are also looking in to the matter but they are yet to respond to requests for comment. A spokesperson for the Kentucky Department of Financial Institutions stated that they have followed their policy  which does not allow them to comment on ongoing enforcement actions and investigations. Alabama Securities Commission Director Joseph Borg confirmed that U.S. Securities and Exchange Commission has also been in communication with Celsius.

Celsius is blaming the extreme market conditions as the main reason behind their step. They said, “We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,”


Global Scenario


The world has already seen raise of prime rates of Federal Reserve followed by Wallstreet banks. Added to that since the starting of june moe than 46,000 people reported losing over $1 billion in cryptocurrency scams since the start of 2021 according to a report by Federal Trade Commission (FTC). This unbalance in in global economy is a sign of more problems coming in in future. People shifting their trust to cryptocurrency will now have to think about it. There was a time when Bitcoin turned so many people from rags to riches. Now it is a time when it is hard to trust and invest money in any cryptocurrency.