Investigation will be done to ban the transactions of crypto lending firm Celsius

Recently, the decision of banning the transactions of clients of crypto lending firm Celsius Network is being investigated by the regulators. Celsius had said that due to the poor condition of the crypto market, it is prohibiting withdrawal and transfer between accounts.

Reuters reports that the US-headquartered firm’s decision to freeze transactions is being investigated by some regulators, including the Texas State Security Board. In this regard, the US Securities and Exchange Commission (SEC) has also sought information from Celsius.

Investigation will be done to ban the transactions of crypto lending firm Celsius

However, the SEC declined to comment. Joseph Borg, director of the Alabama Securities Commission, said, “I am concerned that the firm’s clients, including retail investors, may be required to redeem their assets but they may do so. This could add to their financial difficulties.”

Celsius Network had said in a blog post, “We are taking these necessary steps to strengthen liquidity and business. Along with this, measures are being taken to protect the assets. Customers will continue to get rewards during this time.” At the end of last year, the firm had secured funding of about $750 million. It is one of the largest firms involved in crypto lending.

It offers interest to customers depositing its cryptocurrencies and lending cryptocurrencies to earn returns. Scrutiny of the crypto segment has increased especially in many countries including the US. In the last few months, due to the increase in the cases related to fraud in this segment, the regulators have called for tightening of scrutiny. Work is also being done on making laws for the crypto segment in some countries.

The crypto market was hit hard by falling heavily after central banks in several countries, including the US, raised interest rates and stable coin TerraUSD broke ties with the dollar last month. This has resulted in the loss of millions of dollars to the investors. It has also had a big impact on the business of many crypto firms. Stablecoins are cryptocurrencies that attempt to link their market price to a reserve asset such as gold or common currencies.

Sunil Kumar writes about smartphones and laptops for Gadgets 360 Tech News based out of Mumbai. He is Deputy Editor (Reviews) at Gadgets 360 Tech News. He has written frequently about the smartphone and PC industry and has an interest in photography as well.

Sharing Is Caring:

Leave a Comment