US states have opened an investigation into Celsius Network’s suspension of withdrawals.
Several states, including Texas and Alabama, have begun investigating Celsius Network’s decision to discontinue withdrawals.
The crypto lending platform published a block post on June 12 announcing that they will pause swap and transfer products as well as withdrawals, citing “extreme market conditions”. With the spread of rumors about the company’s bankruptcy, panic atmosphere once again dominated the markets.
Texas State Securities Board (PTSD) officer Joe Rotunda said they met early Monday morning to open an investigation. Rotunda told Reuters:
“I am very concerned that clients, including many retail investors, may need access to their assets but cannot withdraw funds from their accounts. Failure to access investments could result in significant financial consequences”
Alabama Securities Commission officer Joe Borg said he also saw Celsius freezing client accounts as “a new mess”. Borg stated that they have been working with Celsius for a while and provided information to them.
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