Celsius Faces Federal Investigations In 40 States For Suspending Crypto Withdrawals – Bitcoin (BTC/USD)

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Cryptocurrency lenderCelsius NetworkCEL/USD, which declared bankruptcy earlier this year, told a US bankruptcy court that it is facing several federal investigations.”

What Happened: Celsius has been subject to enforcement proceedings or investigations in at least 40 states, it told the Southern District of New York, Bloombergreported.

The USSecurities and Exchange Commission, Commodity Futures Trading Commission, and Federal Trade Commission have sent queries to the firm.

See More:WHAT IS DEFI?

Celsius gained popularity by paying people interest on their cryptocurrency deposits butfroze withdrawals in Juneafter risky bets backfired and cryptocurrency prices crashed.

The platform facilitated users to earnBitcoinBTC/USD, avail of crypto-backed loans, and stake their coins.

Creditors have sent letters to the judge in charge of the case, accusing Celsius and its former CEO Alex Mashinsky of misleading them about the risks involved in investing their cryptocurrencies in the company.

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