Texas and New Jersey regulators allege Celsius Network of illegal funding its lending operations

    Texas and New Jersey regulators allege Celsius Network of illegal funding its lending operations

    The Texas State Securities Board has recently filed for a hearing aiming to impose a cease and desist order against Celsius Network, a crypto lending firm.


    The Securities Board anticipate that Celsius has not been offering securities licensed at either state or federal level. New Jersey’s Bureau of Securities has also ordered Celsius from stopping to offer or sell any interest-inducing cryptocurrency products.


    Texas Securities filing has been done on September 17, requesting for a regulator hearing related to accusations against the Celsius Network, alleging that the platform has not been registered or permitted as a dealer under the Texas Securities Act. If the judge approves that Celsius’s offerings are unlicensed, the Network could face a cease and desist order.


    On September 17, New Jersey’s Bureau of Securities has also announced the issuance of a cease and desist order against Celsius platform for funding its crypto-lending operations “through the sale of unregistered securities”, which is in strict violation of the New Jersey Securities Law. According to the New Jersey’s regulator, the firm has reportedly raised about $14 billion from those sales.


    If approved, the hearing would be held on February 14, either online or in person. Consequently, Celsius Network and its affiliates, including Celsius US Holding, Celsius Lending and Celsius Network Limited, all the three would be immediately stopped from offering crypto services in Texas state unless they register with either the state’s securities board or the US Securities and Exchange Commission.


    The Texas filing further details that Celsius has held over $24 billion in digital assets, as recorded on September 3, making the firm one of the largest in decentralized finances. Its holdings were also notedly growing since June 2020 by more than 2,300 per cent.


    In Texas alone, as of June 9, Celsius Network has over $344 million in digital assets under management from more than 9000 residents and local businesses.


    The allegations against Celsius are very much similar to both Texas and New Jersey state regulators. The accusations also match with their peer in Alabama, which was levied against crypto lending firm BlockFi in July. The firm is scheduled to appear at a virtual hearing on October 13 in Texas for discussing the imposition of a cease and desist order for “illegally funding its crypto lending operations.”

    Stay in the Loop

    Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

    Latest stories

    - Advertisement - spot_img

    You might also like...