Texas Reportedly Launches an Investigation Into Celsius Network
According to reports from Reuters, Texas has launched an inquiry into the cryptocurrency loan platform Celsius Network. Questions have been raised about the platform's decision to prohibit withdrawals, transfers, and swaps.
BREAKING:🇺🇸 Texas has launched an investigation into Celsius Network.
— Watcher.Guru (@WatcherGuru) June 16, 2022
On Thursday, the Texas State Securities Board's Director of Enforcement informed Reuters:
"On Monday morning, the crew got together and started looking into the account freeze." The investigation was a "priority" for him.
In the report, Rotunda expressed his fear that many clients, particularly retail investors, may want access to their money but are currently unable to do so due to Celsius's decision.
For the past 88 hours, Celsius has been silent.
For the past 88 hours, swaps, withdrawals, and trading have been banned on Celsius. Users were promised that they may withdraw their bitcoin at any moment, and the platform has now kept it for more than three days.
The Celsius network had an exceptionally turbulent weekend. The platform was chastised for its financial mismanagement.
Celsius announced the stoppage of withdrawals, swaps, and transfers on their blog in the thick of it all. The platform announced in a lengthy blog post that it was forced to do so due to "extreme market conditions." The moves were taken to stabilize Celsius's liquidity and operations, according to the team.
Youtuber Ben Armstrong said on Twitter that he will sue Celsius and Alex in a class-action lawsuit. Celsius may now face more legal problems in addition to the ones he currently faces. Ben claims to be one of the persons who has been hurt and says he will reveal more details about the case in the following days.
The latest probe started by Texas might cause the platform much more damage.