Alabama Regulator Joins Accusations Against Celsius Network

The Alabama Securities Commission (ASC) has asked Celsius Network’s crypto-lending service to explain why its offerings do not constitute sales of securities under the state’s law. The Block reports this, citing the agency’s document.

According to the order, “investment programs designated as Celsius Earn Reward represent capital raising from which investors expect a return.” In ASC’s view, this falls under the definition of securities.

Earlier, regulators in Texas and New Jersey accused Celsius Network of selling unregistered securities.

The founder of the service, Alex Mashinsky, called the authorities’ actions “disappointing.” He said the company does not agree with the statements about violations of the law.

2. We always have, and will continue to, work with regulators in the US and globally to operate in full compliance with the law. Given our commitment to regulatory adherence, we look forward to addressing this matter quickly.

— Alex Mashinsky ©️ (@Mashinsky) September 17, 2021

“We have always worked and will continue to work with regulators in the United States and around the world to operate in full compliance with the law. Given our commitment to regulatory compliance, we hope to resolve this matter quickly,” Mashinsky wrote.

According to him, Celsius Network has no plans to change any services for customers.

Earlier, BlockFi’s crypto-lending platform faced similar accusations. The legality of the Earn Interest Account (BIA) offering will be reviewed by financial regulators in Texas, Vermont, New Jersey and Alabama.

CEO Zac Prince expressed confidence that cryptocurrency lending services will survive despite state-level regulatory pressure.

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