WASHINGTON :Liquidity troubles at crypto lending platform Celsius Network, which have left its 1.7 million customers unable to redeem their assets, will increase U.S. regulatory pressure on the sector, which was already on the defensive amid other crises this year.
The Texas State Securities Board has opened an investigation into the Celsius decision, its director of enforcement told Reuters on Thursday. Recent turmoil in the cryptocurrency market underscores the"urgent need" for regulatory frameworks that reduce digital asset risks, a U.S. Treasury official said on Thursday.
As a result, its customers had little visibility over how it was investing their assets, and it's unclear if they will get them back. The SEC meanwhile last year blocked a Coinbase Global Inc plan to launch a lending product and sued lending platform BitConnect for fraud. Registering crypto lending products would not eliminate all risks to investors, but would increase transparency around such products and ensure some risk management controls, said experts.
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Analysis-Too good to be true? Celsius meltdown to boost crypto lending product scrutinyWASHINGTON : Liquidity troubles at crypto lending platform Celsius Network, which have left its 1.7 million customers unable to redeem their assets, will increase U.S. regulatory pressure on the sector, which was already on the defensive amid other crises this year. The industry has been battling scrutiny
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How crypto lender Celsius stumbled on risky bank-like investmentsCelsius Network, the retail crypto lending platform whose liquidity problems have sent cryptocurrencies plunging, stumbled on complex investments in the wholesale digital asset market in what analysts say was akin to a traditional bank run. Citing extreme market conditions, New Jersey-based Celsius this w
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Celsius hires lawyers to restructure business after freezing withdrawals - WSJCrypto lender Celsius Network LLC has hired restructuring attorneys from law firm Akin Gump Strauss Hauer & Feld LLP to advise on possible solutions for its mounting financial problems, the Wall Street Journal reported https://on.wsj.com/3zDL82U on Tuesday.Celsius is first looking for possible financing o
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Exclusive-Texas securities regulator is probing Celsius account freeze - officialWASHINGTON : The Texas State Securities Board has opened an investigation into crypto lender Celsius Network's decision this week to suspend customer redemptions, its director of enforcement Joseph Rotunda told Reuters on Thursday.'The team met and began investigating the freezing of accounts first thing
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