Following an announcement earlier this week to halt user withdrawals, the lending platform is attracting scrutiny from authorities. On Tuesday, Celsius Networks paused withdrawals on its platform stating the move was in the interest of the users.
Celsius Probe In Texas
In a latest, a regulatory board in Texas began a probe in this matter. Acording to a Reuters report, the Texas State Securities Board had on Thursday opened an investigation into Celsius’ decision. The move to suspend customer redemptions is being looked at, Joseph Rotunda, director of enforcement, was quoted as saying by Reuters.
In an email statement, the director said the regulatory scanner around freezing of accounts is already underway. He added that the board took the matter as a priority issue.
“The team met and began investigating the freezing of accounts first thing on Monday morning,” Rotunda said in an email, adding he considered the probe to be a “priority.”
‘No Withdrawal Of Investor Assets’
He expressed concern over investors not being able to withdraw their assets immediately. They may need to immediately access their assets yet are unable to withdraw from their accounts, he explained. Rotunda said the inability to access their own investment could “result in significant financial consequences.”
