Regulators in at least six U.S. states are investigating Celsius. Vermont’s state financial watchdog is the latest to take action against the crypto-lender.
- Celsius is being investigated by at least six U.S. states.
- Vermont joined that company’s “multi-state” investigation.
- California is also looking closely at crypto lenders.
Financial regulators in the U.S. state of Vermont have joined the list of agencies in the country investigating the beleaguered crypto lender Celsius Network a network refers to all nodes in the operation of a blockchain at any given moment in time. .
Vermont Department of Financial Regulation (DFR) issued a statement warning to consumers on Tuesday to alert them to the company’s status. The warning alleges that Celsius “es profundamente insolvente” while lacking the assets and liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. to meet its obligations to account an account is essentially a whose purpose is to track the financial activities of a specific asset/ holders and other creditors.
Celsius used client a client is software that can access and process blockchain transactions on a local computer. A common application of this is a cryptocurrency software wallet. assets in a variety of risky and illiquid investments, transactions, and loans. Celsius compounded these risks by using client assets as collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. to obtain additional loans to pursue leveraged investment strategies.
The state agency also indicated that it believes the company has engaged in “ una oferta de valores no registrada ” by offering cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. interest accounts to retail investors. The DFR added that in light of these concerns, it has joined a “ multistate research “ de Celsius .
Celsius investigated by Vermont and five other states
According to reports Cointelegraph Vermont is now the sixth U.S. state to open an investigation into the cryptocurrency lending company. Financial regulators in Alabama, Kentucky, Nueva Jersey, Texas y Washington had already begun inquiries about the platform a place to buy, sell and store cryptocurrency shortly after it froze withdrawals last month.
Texas State Securities Board Director of Enforcement Joseph Rotunda, overtook Reuters en ese momento que los funcionarios de los cinco estados estaban abriendo una investigación conjunta que han calificado como “ priority “.
Celsius is one of the industry’s crypto lenders facing liquidity issues amid prolonged price turmoil in the market. The platform suspended withdrawals on 12 June last, citing the “ extreme market an area or arena, online or offline, in which commercial dealings are conducted. conditions “and since then he has been shuffling his options for dealing with the difficulties.
In recent weeks, the company has cut jobs, hired a legal team to advise it and even considered filing for bankruptcy. bankruptcy . Celsius has also been seeking liquidity by accessing loan collateral in decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. finance protocols (DeFi). The firm has been paying off various debts to access these deposits.
On Tuesday, it was reported that Celsius finished paying its debt to the protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. Aave after making a payment of USD $8.4 million in the stable USDC currency. Earlier, the lender had managed to access some USD $418 million de tokens stETH after sending USD $81.6 million to Aave as part of the payment of your debt.
Last week the firm had already paid a debt to MakerDAO . Reports suggest that it currently has only one outstanding payment of USD $50 million to the protocol.Compound to pay off their debts in full.
California investigates crypto lenders
Celsius is not the only crypto-lender in trouble amid the market’s price decline; other companies such as Babel Finance , Vauld y CoinLoan también han detenido los retiros. Esta potencial crisis de insolvencia en la industria ha llamado la atención de los reguladores de varios países, incluyendo EE. UU., donde cada vez más estados han comenzado a abordar esta situación.
According to a recent report by CoinDesk California regulators are one of the latest to join this list. The California Department of Financial Protection and Innovation (DFPI) said this week that it was investigating several crypto lenders based in the country following moves to indefinitely curb withdrawals.
While it did not name names, the agency said it was evaluating the ” multiple ” companies that “ offer interest-bearing crypto-asset accounts to customers “or cryptocurrency accounts. It is very likely that Celsius be included in your list.
CoinDesk remembers that the California’s DFPI has already conducted investigations and taken action against several cryptocurrency companies in the past, including BlockFi y Voyager Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. , que también están entre las firmas que enfrentan problemas financieros en medio de la desaceleración reciente del mercado.
- Crypto lending platform CoinLoan limits withdrawals citing market conditions
- Three Arrows Capital capital is most commonly defined as the large sum of money you would use to invest. received a notice of default for non-payment of more than $650 million in loans
- Goldman Sachs seeks to raise $2 billion to buy Celsius assets, report says
Article by Hannah Estefania Perez / DiarioBitcoin
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