Celsius Network Investigated by State Security Boards For Blocking Cryptocurrency Withdrawals

Numerous states have now launched investigations into cryptocurrency lender Celsius Network over its blocking of crypto withdrawals earlier this week. According to a new report from Reuters, the state securities boards of Texas, New Jersey, Alabama, Washington and Kentucky have launched probes into the company after it froze transactions and locked up all of its two million customers’ assets on Tuesday amid the massive plummet in crypto prices. At the time, Celsius said that the block was necessary in order to “stabilize liquidity” and that it would put it “in a better position to honor, over time, its withdrawal obligations.”

Texas State Securities Board enforcement director Joseph Rotunda has now expressed concern over investors being locked out of their assets. “I am very concerned that clients – including many retail investors – may need to immediately access their assets yet are unable to withdraw from their accounts,” he said. “The inability to access their investment may result in significant financial consequences.” Rotunda added that the investigations are a “priority.”

Elsewhere in the crypto industry, Coinbase has laid off almost 1,100 employees amid the “crypto winter.”