Many state regulators in the United States have gone after Celsius Network, a crypto firm that offers lending services, for failing to comply with the local state laws. However, the CEO of the project was quite quick to deny the allegations and promised the services of the protocol would be unaffected.
The State Regulators Went After Celsius
The US Watchdogs have increased the intensity of their enforcement action against the crypto space lately, and the latest example was revealed on Friday. The Texas State Securities Board has filed for a hearing that, in a way, could make Celsius face a cease-and-desist order.
The regulator claimed that the crypto firm had provided unregistered securities continually. The hearing for this case will hold on February 14, 2022, before a law judge. And if the judge agrees with the allegations of the watchdogs, the crypto lending firm could have its services halt in the state without the needed license.
Right after, the Bureau of Securities of New Jersey took the showdown a step further by ensuring investors are protected from the unregistered securities sales where they earn interest on crypto products. To ensure protection, the regulator has ordered that firm to stop selling and offering those products.
The statement claims the firm has violated the New Jersey Securities Law by offering the sales of unregistered securities. Through this, the crypto lending firm has raised $14 billion through illegal sales.
It is noteworthy to mention that the BlockFi has gone through similar regulatory scrutiny recently in the state of New Jersey. It was reported in July that the local regulatory watchdog had ordered the lending and trading firm to stop adding new customers from July 22nd.
Nothing of Such Says Celsius CEO
The CEO of the crypto lending firm, Alex Mashinsky, used his Twitter page to address the mentioned regulatory actions. He claimed that the firm disagrees wholeheartedly with the allegations against the firm on the non-compliance with the local laws.
He said, “We have always work with the regulators and will continue to work with them in ensuring full compliance with the law. With our commitment to adhering to the law, we will address the matter as soon as possible.”
He then went on to give an assertion on their compliance with the US regulators and assure the customers that there won’t be any glitch in the services it offers.