Crypto lending platform Celsius Network is undergoing a major strategic transition to become a mining firm, amidst legal troubles and financial uncertainty. A recent court ruling endorsed Celsius’s shift to crypto mining, marking an important milestone as the company aims to remedy the predicament of customers with inaccessible funds.
However, revelations by the Commodity Futures Trading Commission revealed that Celsius violated U.S. regulations by misleading investors and operating without proper registration.
Additionally, former CEO Alex Mashinsky faces a September 2024 trial date following a colleague’s admission of guilt, with accusations of fraud and non-compliance with regulations casting a shadow on Celsius Network’s path.
“Today marks the culmination of a journey that has been far too long and far too expensive for Celsius creditors,” Arrington said. “We are eager to dig in on our go-forward plan to make things whole for our creditors.”
Despite the company’s legal woes, the market shows positive momentum as Celsius’s CEL token rose to 42% in the past week and is currently trading at $0.30. According to CoinGecko, CEL has a market cap of $130 million, making it the 257th largest cryptocurrency globally.