The state regulators of five states in the United States are currently investigating the Celsius network over their recent action of freezing withdrawals and transfers between accounts.
According to a Reuters report, Texas, Alabama, Kentucky, New Jersey, and Washington are the five states that have Celsius under their radar.
Joseph Rotunda, Texas State Securities Board director of enforcement, stated that the officials from these states are making it a “priority” to investigate Celsius.
Rotunda added “I am very concerned that clients—including many retail investors—may need to immediately access their assets yet are unable to withdraw from their accounts. The inability to access their investment may result in significant financial consequences.”
Alabama Securities Commission Director Joseph Borg revealed that the securities regulators are looking into the matter, and Celsius has responded to regulators’ questions, but the investigation is still in its early stages.
Joseph Borg stated that the U.S. Securities and Exchange Commission has also been in contact with Celsius but the SEC has not commented on their investigation yet.
All of this is in a chain reaction to Celsius’ decision to pause withdrawals and transfers by citing extreme market conditions. The team has yet to reveal what the actual matter is and the investors are going berserk.
While Celsius CEO Alex Mashinsky took to Twitter to express his gratitude for the company’s clients’ support, the company began hiring restructuring attorneys from the law firm Akin Gump Strauss Hauer & Feld LLP for financial advice.
At the time of writing Celsius’ native token CEL is trading at a price of $0.5566, up 1% in the last 24 hours.
