[ad_1]
Two U.S. states are taking legal action against a cryptocurrency lender they claim sells unregistered securities.
Texas and New Jersey are taking legal action against London-based Celsius Network (CEL) for allegedly raising funds through the sale of unregistered products.
New Jersey issues a cease and desist order for illegal sales of “interest-generating cryptocurrency products,” forcing the network to stop offering those products in the state. According to the statement, Celsius is partially funding its cryptocurrency lending and trading operations through the sale of securities that are believed to be in violation of New Jersey securities law.
Texas files a notice of hearing next year to determine whether it should also issue a cease and desist order against Celsius for illegally selling “paid cryptocurrency accounts.”
The Texas filing means CEL will have to show why they shouldn’t be forced to stop offering securities to residents of the state. The hearing is set for February 14, 2022.
New Jersey’s move comes after the state issued a similar order in July against BlockFi, another crypto lending platform. New Jersey Acting Attorney General Andrew Bruck said other cryptocurrency lenders operating in the state should take note of the trend.
“Financial firms operating in the cryptocurrency market are warned… if you are selling securities in New Jersey, you must comply with New Jersey investor protection laws. Companies that deal with cryptocurrencies are not immune from surveillance.
CEL is trading at $ 5.38 at the time of writing, down more than 20% from its 30-day high of $ 6.49, according to CoinMarketCap.
Don’t Miss a Beat – Subscribe to receive crypto email alerts straight to your inbox
follow us on Twitter, Facebook and Telegram
Surf the daily Hodl Mix
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high risk investments in Bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may suffer is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in Affiliate Marketing.
Featured Image: Shutterstock / Tithi Luadthong
[ad_2]
Source link