Securities regulators in the U.S. states of Texas, New Jersey, Alabama, Kentucky and Washington are investigating crypto-lending platform Celsius Network’s decision to suspend customer redemptions, CNBC reported.
Joseph Rotunda, head of law enforcement for the U.S. state of Texas, said officials met and began investigating the matter Monday morning. He said, “I’m very concerned that customers, including many retail investors, may need immediate access to their assets but not being able to withdraw money from their accounts and not having access to their investments could lead to significant financial consequences.” Joseph Borg, director of the Alabama Securities Commission, said Celsius has been responding to questions from regulators, but the investigation is still in its initial stages. borg added that the U.S. Securities and Exchange Commission (SEC) has also been in communication with Celsius. the SEC declined to comment.