US investigates Celsius blocking customer withdrawals

US investigates Celsius blocking customer withdrawals

An investigation has been launched in the United States related to cryptocurrency finance company Celsius Network’s decision to temporarily suspend the ability to withdraw funds and make transfers between accounts. informed Reuters, citing an interview with Joseph Rotunda, director of legal affairs at the Texas Securities Board (USA).

    Image Credit: Kanchanara/Unsplash

Image Credit: Kanchanara/Unsplash

Joseph Rotunda said that representatives of state securities regulators from Alabama, Kentucky, New Jersey, Texas and Washington met Monday to announce the investigation. He added that he was considering this investigation “Priority”.

“I am very concerned that clients, including many retail investors, may need instant access to their assets but are unable to withdraw funds from their accounts. Not having access to your investments can lead to significant financial consequences.” said Rotunda.

Alabama Securities Commission director Joseph Borg confirmed to Reuters that securities regulators in Alabama, Texas, New Jersey and Kentucky are indeed investigating the matter. Celsius has responded to questions from regulators, but the investigation is still at an early stage, he said.

Celsius CEO Alex Mashinsky previously said the company had $25 billion in assets as of October, according to the Celsius website the company had much less assets at $11.8 billion last month.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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