Celsius Network has come under fire from regulators in three states in the United States.
Three States go after Celsius for violating securities laws
Alabama, Texas and New Jersey have accused cryptocurrency platform Celsius Network of violating securities laws. The crypto platform has been given four weeks to explain how its services are not violating securities laws.
In an order last week, the Alabama state securities regulator said Celsius violated state laws through its “Earn Rewards” program. The regulators in Texas and New Jersey also announced similar accusations last week.
In New Jersey, the regulator filed a cease-and-desist order to the cryptocurrency platform. In Texas, the regulator said it intends to hold a hearing in February to determine if a cease-and-desist should be ordered.
The Alabama regulators have given Celsius a month to show cause why a cease and desist order shouldn’t be implemented. If Celsius refuses to respond, the regulator said it would assume Celsius is waiving its right to a hearing and immediately move to impose sanctions.
Celsius is disappointed with the actions
Celsius has responded to the allegations, stating that it is not happy with the actions. The company said, “We are disappointed these actions have been filed and wholeheartedly disagree with the allegations being made that Celsius has not complied with the law. We always have, and will continue to, work with regulators in the US and globally to operate in full compliance with the law. Given our commitment to regulatory adherence, we look forward to addressing this matter quickly. As of now, there are no changes in our services to any of our clients. We will keep our community updated with any development.”
Celsius CEO Alex Mashinsky said he is looking forward to explaining the company’s business to regulators.