The state securities board of Texas has requested for a trial to potentially enforce a “cease-and-desist” order on Celsius Network (a crypto lending company) for not delivering securities being licensed at the federal or state level. The Securities Bureau of New Jersey has directed the platform to halt its selling and offering of crypto products that are related to interest-earning. As per a filing of 17th September, a trial will be conducted by the regulatory department of Texas against the Celsius-Network regarding its unpermitted or unregistered selling and offering of securities, and the department will issue a cease-and-desist order against the firm for such an activity.
On the very day, the Securities Bureau of New Jersey also declared to have had issued a cease-and-desist order for Celsius as the firm has been highly suspected of partly or wholly involved in the Securities Law of the state by selling the securities which are unregistered and it has collected up to $14 billion during those sales. Andrew Bruck, the acting attorney of New Jersey, asserted that the institutions selling securities must have to observe the law of the State by keeping in mind that they are continuously being observed.
The trial in Texas can be conducted online or otherwise in-person on 14th February. If the order of cease-and-desist is issued by the judge, then the network along with its associates such as Celsius Lending, Celsius US Holding, and Celsius Network Limited would be compelled to halt the offering of services related to crypto that are unregistered with the US SEC (Securities-and-Exchange-Commission) or securities board of the state.
As per the filing of Texas, the network has gathered up to $24 billion amount in virtual assets till 3rd September, which places the firm among the biggest in the whole world of decentralized finance. The holdings of the firm have been continuously expedited by 2,300% since 2020’s June when it was reported to have $1 billion in virtual assets. Just in Texas, the network has exceeded to have more than $334 million in assets belonging to 9,000 citizens as well as native businesses till 9th June.
Alex Mashinsky, the CEO of Celsius, has time and again mentioned that they introduced the idea of giving out yield over crypto and subsequently have begun many methods of providing benefits to its consumers since then.