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The Celsius Network Appears To Be In Trouble With Regulators


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The Celsius Network is in trouble…..

State regulators in both Texas and New Jersey are reportedly going after the crypto lending network, citing a lack of regulatory oversight on the popular platform.

Hearings are set to take place in Texas to discuss a regulatory framework for securities that regulators say are not registered with the proper agencies and state authorities.

According to sources, Celsius holds roughly $24 billion in assets.

Here’s more on the story:

Coin Telegraph had more details:

Texas’ Enforcement Division of the State Securities Board notified Celsius on May 14 that it may not have been in compliance with the state’s Securities Act.

In a Sept. 17 filing, it alleged that the platform’s Earn Interest-Bearing Accounts were in violation of Section 4.A of the Securities Act, saying they constituted “investment contracts, notes, or evidences of indebtedness regulated as securities.”

The allegations against Celsius are similar to those both state regulators — as well as their peer in Alabama — levied against crypto lending platform BlockFi in July.

Coin Desk reiterated New Jersey Attorney General Andrew Bruck’s call for tighter controls:

“If you sell securities in NJ, you need to comply with NJ’s securities laws. And that includes those operating in the cryptocurrency market,” tweeted New Jersey Acting Attorney General Andrew Bruck. “Our Bureau of Securities has ordered an NJ-based company – Celsius – to stop offering interest-bearing accounts.”

New Jersey and Texas were also among the states to slap crypto lender BlockFi with similar actions in July.

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