New Jersey and Texas step up pressure on crypto lender’s Celsius network for allegedly selling unregistered securities

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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 publishes a cease and desist order for illegal sales of “paid cryptocurrency products”, forcing the network to stop offering these products in the state. According to the statement, Celsius partially funds its cryptocurrency lending and trading operations through the sale of securities that are believed to be in violation of New Jersey securities law.

Texas is filing a notice for a hearing next year to determine whether he should also issue a cease and desist order against Celsius for illegally selling “interest-bearing 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 released a 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 companies 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 in 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.

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Featured Image: Shutterstock / Tithi Luadthong



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