On June 17, the Fox business journalist, Eleanor Terrett tweets “Celsius Network in communication with SEC as four states join Texas investigation into company following its decision to suspend customer redemptions.”
On June 12, the famous cryptocurrency lending platform, Celsius, said that it was suspending all withdrawals because of the negative trend of the market. Later on the same day, Celsius received inquiries from regulators of various US states, such as Alabama, Kentucky, New Jersey, Texas, and Washington, over its decision to suspend the withdrawal of funds.
Reuters reports that state securities authorities in Alabama, Kentucky, New Jersey, Texas, and Washington are investigating cryptocurrency lender Celsius Network’s decision to suspend withdrawals this week.
In addition, Alabama Securities Commission Director Joseph Borg informed Reuters that the US Securities and Exchange Commission has spoken with Celsius.
Its engagement with stETH, a coin created by Lido, was linked to some of Celsius’s issues. Celsius was compelled to halt withdrawals “in part owing to stETH losses and a shortage of liquidity, which pushed them to sell other assets to pay redemptions.”
On the other hand, Celsius CEO Alex Mashinsky tweeted on June 15, breaking his company’s silence since it froze withdrawals, to remind the Celsius community that the company’s staff is working “non-stop” on the problem and to thank users for their patience.
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