Embattled cryptocurrency lender Celsius is under federal investigations, Bloomberg reports.
The failed company is facing intense regulatory scrutiny in “at least” 40 states.
Last week, Celsius received a subpoena from federal prosecutors. It was issued just days after the platform unexpectedly blocked withdrawals in June, catching its customers off-guard.
In early September, Vermont regulators accused the crypto landing firm of misleading its investors about its financial health. Celsius suffered financial losses years before filing for bankruptcy despite claiming that it was profitable.
Chief United States Bankruptcy Judge Martin Glenn, who is responsible for overseeing Celsius's bankruptcy case, may look to the U.K. consultation paper for guidance.
Celsius filed for bankruptcy a month after halting its withdrawals.
Earlier this month, it came to light that multiple Celsius executives, including former executive CEO Alex Mashinsky, had withdrawn tens of millions of dollars’ worth of crypto from the platform before it went belly-up.
As reported by U.Today, failed hedge fund Three Arrows Capital is also being investigated by American regulators. Both companies went underwater during the most recent cryptocurrency crash.
Gamza Khanzadaev
Yuri Molchan
Arman Shirinyan