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State securities regulators investigate Celsius over withdrawal suspension: Report

Published 06/16/2022, 02:30 PM
Updated 06/16/2022, 04:40 PM
State securities regulators investigate Celsius over withdrawal suspension: Report

Securities regulators from five U.S. states have reportedly opened an investigation into crypto lending platform Celsius Network over its decision to suspend user withdrawals.

According to a Thursday report from Reuters, Texas State Securities Board director of enforcement division Joseph Rotunda said regulators in Alabama, Kentucky, New Jersey, Texas and Washington began investigating Celsius after the platform announced it would be “pausing all withdrawals, swaps and transfers between accounts.” Rotunda reportedly called the investigation a “priority” for the Texas regulator and confirmed to Cointelegraph the enforcement division was "looking at the issue involving the frozen accounts."

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The pressure on leading cryptocurrencies came from fears that leading lender Celsius would become insolvent and followed an announcement on Monday that the firm would temporarily pause its operations. The low point has come almost exactly one month after the Terra Luna collapse rocked the market in May and will have left investors anxious to understand how much further it could tumble. https://worldabcnews.com/bitcoin-price-retreats-to-lowest-since-2020-can-it-go-down-ever-further-city-business-finance/
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