The Kentucky Department of Financial Institutions has accused the Celsius Network cryptocurrency-lending service of selling unregistered securities.<\/p>\n
According to the regulator’s order, Celsius Network’s offerings violate the state’s securities laws. The service did not disclose to customers what was happening with their deposits, the department said.<\/p>\n
The company may request an expedited hearing to challenge the decision, or appeal it in court.<\/p>\n
Earlier, regulators in Alabama<\/a>, Texas and New Jersey<\/a> filed similar claims against Celsius Network. The company’s founder, Alex Mashinsky, described the authorities’ actions ‘disappointing.’ He said the company does not agree with the statements about violations of law.<\/p>\n As a reminder, regulators in Vermont<\/a>, New Jersey<\/a> and Alabama<\/a> will review the legality of the BlockFi crypto-lending platform’s savings accounts offering.<\/p>\n The company’s chief executive Zac Prince expressed confidence that crypto-lending services will survive<\/a> despite regulatory pressure at the state level.<\/p>\n Celsius Network LLC 2021AH00024<\/a> by ForkLog<\/a> on Scribd<\/p>\n