Crypto credit company Celsius Network has confirmed that it is one of three platforms that have been asked to provide information to the New York Attorney General’s Office.
In a blog post on Tuesday, Celsius said that it is not one of two named crypto-lending platforms that New York State Attorney General Laetitia James has ordered “to cease any such activity” related to the sale or offer of cryptocurrency. Instead, Celsius said it was “working to provide New York City regulators” with information about the company.
“In the event that any regulatory or technical changes are required in a particular jurisdiction, Celsius will provide clear and timely information as needed,” the lending platform said in a statement. We know that the only way to succeed and ensure our long-term growth is through clear regulatory requirements. We expect and plan for this kind of routine checks and balances. ”
Celsius’ statement came after the NYAG office issued a non-binding request for information from three named crypto-lending platforms operating in the state, though the AG has indicated a potential lawsuit. James asked the company to provide detailed information on loan products, policies and procedures, clients in New York, and other relevant information.
While Celsius has not received any suspension or waiver orders from New York state, the platform is targeted by regulators in Texas and New Jersey. On September 17, the Texas Securities Board filed a request for a hearing to suspend the Crypto-Celsius order for its alleged failure to comply with an offering of state or federal authorized securities. On the same day, the New Jersey Securities Exchange ordered the lending platform to stop offering and selling interest-bearing cryptocurrency products.
A Celsius spokesperson said at the time that the company “strongly disagrees” with the allegations and is working with US regulators “to act in full compliance with the law.” According to the platform’s response to the NYAG’s briefing request, Celsius has a very open and productive dialogue with regulators around the world. ”
On this topic: Cryptocurrency lending company Celsius Network has raised $400 million.
Nexo Financial confirmed Monday that of the four other companies accused of the NYAG crash, it has received one of two termination and disapproval orders. However, according to a Nexo spokesperson, the company does not offer Earn Product and Exchange products in New York State.
“There’s no point in getting stop and cancel orders for something we don’t offer in New York anyway,” the spokesman said. “We will be partnering with the NYAG because this is a clear case of confusion among the recipients of the letter.”
Three other companies that received reports from NYAG remain unidentified. Under New York City law, all crypto brokers, traders, dealers, and investment advisors must register with the NYAG Investor Protection Office if they do business in the state. Those who do not do so without exception will be subject to civil and criminal penalties.