Troubled Crypto Lending Firms Investigated by Securities Regulators from Texas and Alabama

State securities regulators have started investigating the embattled crypto companies that went underwater during the recent market turmoil

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Fri, 8/07/2022 - 20:08

Troubled Crypto Lending Firms Investigated by Securities Regulators from Texas and Alabama

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State securities regulators in Alabama and Texas have zeroed in on Celsius and Voyager Digital, two embattled cryptocurrency lenders, Bloomberg reports.

According to Joseph Rotunda, the enforcement director at the Texas State Securities Board, the watchdog will investigate whether or not the companies properly disclosed how they were handling customers’ money. The regulators will also look into potential cases of improper risk disclosure.

As reported by U.Today, Celsius abruptly halted withdrawals on June 13 after facing a liquidity crisis.

Meanwhile, Voyager Digital was forced to file for bankruptcy on July 6 after failed hedge fund Three Arrows Capital didn’t manage to pay back its $650 million loan.

While Celsius is fighting against bankruptcy, it was recently hit with a lawsuit that accuses the firm of orchestrating a blatant Ponzi scheme.

About the author

Alex Dovbnya

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.