Tag: Crypto lending

In July 2023, the U.S. Securities and Exchange Commission (SEC) charged Celsius Network and its founder for the unregistered offer and sale of securities, highlighting the significant regulatory gray areas in which the company operated. This regulatory action, alongside other federal and state interventions, reveals the complex reality: is Celsius regulated? The answer is far from straightforward, especially for everyday investors who lost billions.

In July 2022, cryptocurrency lending platform Celsius filed for Chapter 11 bankruptcy, holding approximately $4.7 billion in digital assets belonging to its 1.7 million registered users. This came after the company abruptly froze all customer withdrawals, trapping billions of dollars in funds. The primary issue with Celsius was a deeply flawed business model built on false promises, undisclosed risks, and eventual fraudulent activity by its leadership.