[ad_1]
A press release issued by the New Jersey government web portal states that the Celsius cryptocurrency lending platform has received a cease and desist order from the New Jersey Bureau of Securities. In addition, the Texas State Securities Board has ordered Celsius to appear for a hearing and is also threatening to cease and desist. Regulators are not too keen on platforms that offer high yielding interest rates on various cryptocurrencies.
New Jersey regulators send Celsius cease and desist for “Earning rewards accounts”
U.S. Securities and Exchange Commission (SEC) regulators, politicians, and one-state securities supervisors have targeted centralized exchanges, decentralized finance (challenge), and more specifically platforms offering returns.
Lately, Blockfi has had issues with regulators in New Jersey and Vermont, Texas, Alabama and Kentucky. State watchdogs have had issues with the company’s Blockfi Interest Accounts (BIA). Even Coinbase CEO Brian Armstrong said the SEC was threatening to sue the Nasdaq-listed company.
Now, a recently issued cease and desist order from New Jersey Bureau of Securities (NJBOS) chief Christopher Gerold targets the Celsius cryptocurrency lending platform. Similar to Blockfi, the Celsius network says it offers up to 13% APY on cryptocurrency assets.
NJBOS gives Celsius through October, Texas hearing scheduled for February 2022
“Put your crypto to work and earn on your coins, paid out every Monday,” the web portal details. Similar to complaints filed with Blockfi, Gerold and the NJBOS say that “the order is to protect the investing public”.
“Celsius Earn Rewards accounts are not registered with the Bureau or any other securities regulator,” the cease-and-desist order emphasizes. Therefore, these accounts offered by Celsius are “not protected by the Securities Investor Protection Corporation (SIPC)”. The command adds:
[A] the absence of a protective regime or regulatory oversight subjects Celsius investors to additional risks not borne by investors who hold assets with most brokers, banks and savings associations and cooperatives credit union members of the ISDR.
According to the NJBOS file, Celsius must stop soliciting New Jersey customers by October. In the order from the Texas State Securities Board (TSSB), the regulator says the company is “not licensed as a money services business in Texas.” Celsius Earn accounts are “also not protected by Securities Investor Protection Corporation, also known as SIPC”. Interestingly, Texas has given Celsius a much later court date and will be held on February 14, 2022.
What do you think of the New Jersey Bureau of Securities Celsius cease and desist order? What do you think of the company’s problems with Texas? Let us know what you think of this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in this article.
[ad_2]
Source link