Celsius CEO denied allegations of non-compliance with US state laws. Alex Mashinsky, CEO of popular altcoin projects Celsius, promised that the company would work with US regulators after the states of Texas and New Jersey pursued the platform. before too cryptocoin.com We are leaning towards the details of the news we have included.
Altcoin project and US state regulators
Several US state regulators went after popular cryptocurrency platform Celsius Network for failing to comply with local securities laws. The CEO of the project immediately refuted the allegations, promising that all protocol services will not be affected for the time being. United States regulators have recently intensified their actions against the cryptocurrency industry, and the latest example was revealed on Friday. First, the Texas State Securities Board moved for a hearing against Celsius that could potentially warrant a cease and desist.
The regulator argued that the lending company consistently provides unlicensed securities. The hearing will be held on February 14, 2022 in the presence of the Administrative Law Judge. If the judge accepts the regulator’s claims, Celsius will have to stop offering cryptocurrency services in the state without the required license. Shortly after, the New Jersey Bureau of Securities took the restriction a step further by “acting to protect investors from the sale of unregistered securities in the form of interest-bearing cryptocurrency products.” To do so, the regulator ordered the cryptocurrency firm to “stop offering and selling these products.”
The statement alleges Celsius finances its cryptocurrency lending operations and proprietary trading “at least in part through the sale of unregistered securities, in violation of the New Jersey Securities Act.” As such, the company has raised $14 billion through these “illegal sales”. Commenting on the situation, Acting Attorney General Andrew J. Bruck said:
Financial companies operating in the crypto money market draw attention. If you are selling securities in New Jersey, you must comply with New Jersey’s investor protection laws. Companies dealing with cryptocurrencies are not exempt from surveillance.
Celsius CEO: “There is no such thing“
It’s worth noting that BlockFi has also recently come under regulatory scrutiny in New Jersey. The local regulator ordered the trading and lending company to stop accepting new clients from July 22. Alex Mashinsky, CEO of the cryptocurrency lending company, took to Twitter to comment on the aforementioned regulatory actions. He classified these as disappointing developments and claimed Celsius “totally disagree” with the firm’s claims that it was not complying with the law.
Claiming that Celius “always” works with US regulators, Mashinsky added that customers will continue to use all services without any changes.
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