Celsius responds to New York attorney general’s lawsuit against cryptocurrency lending platforms

The cryptocurrency loan company Celsius Network has confirmed that it is one of three platforms that the New York Attorney General’s Office has sought information from.

In a Tuesday post Celsius said it was not one of two unidentified cryptocurrency lending platforms that New York attorney general Letitia James ordered to “cease such activities related to the sale or offering of cryptocurrencies.” Rather, Celsius said it was working to provide information about its business to New York regulators.

“If regulatory or technical changes are required in a particular jurisdiction, Celsius will provide clear and timely communication as needed,” says the loan platform. “We know the only way to thrive and ensure our long-term growth is through clear regulatory guidance. We anticipate and plan these types of routine controls.”

Celsius responds to New York attorney general’s lawsuit against cryptocurrency lending platforms
Celsius responds to New York attorney general’s lawsuit against cryptocurrency lending platforms

Celsius’s testimony comes after the New York attorney general’s office made a non-binding request for information from three unidentified cryptocurrency lending platforms in the state, despite the attorney general pointing out a possible citation. James asked the companies to provide details of their loan products, policies, procedures, New York customers, and other relevant information.

While Celsius did not receive a cease and desist order from New York State, the platform is in the crosshairs of Texas and New Jersey regulators. On September 17, the Texas State Securities Board moved to a hearing with the possibility of issuing an injunction against Celsius for allegedly failing to offer state or state licensed securities. On the same day, the New Jersey Bureau of Securities ordered the lending platform to cease offering and selling interest-bearing cryptocurrency products.

A Celsius spokesman said at the time that “He totally contradicted the allegations and worked with US regulators to work in full compliance with the law.” According to the platform’s response to NYAG’s request for information, Celsius is “maintain a very open and productive dialogue with regulators around the world. “

Of the other four companies targeted by the NYAG offensive, Nexo Financial confirmed Monday that it had received one of two cease and desist orders. However, according to a spokesman for Nexo, the company does not offer its Earn and Exchange product in New York state.

“There is little point in getting an injunction for something we don’t offer in New York anyway.” said the spokesman. “We will contact NYAG as this is a clear case of confusion for the recipients of the letter.”

The other three companies that received communications from NYAG remain unknown. New York law requires all cryptocurrency brokers, distributors, sellers, and investment advisors to register with the NYAG Investor Protection Office when doing business in the state. Those who are not exempted and do not do so will face civil and criminal prosecution.

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