Kentucky will restrict the activities of the Celsius Network in the state
Kentucky is the fourth state to indict the Celsius Network for violating unregistered securities laws.
State financial regulators have said that interest-bearing accounts offered on behalf of the company to its clients are contrary to government securities law. This was announced by the Securities Division of the Department of Financial Institutions of Kentucky, by issuing a corresponding order to immediately stop the activities of a cryptocurrency startup in the state.
Regulators are categorically not ready to accept the view of the Celsius Network team itself on the interest income received by their clients within the framework of cryptocurrency accounts, which the startup calls “reward” and “commission received for funding”. Legislators believe that all investors taking advantage of the Celsius Network's “generous” offering and accounts provided to them are insufficiently protected at the legal level. The Kentucky authorities called the information provided by the company to its clients about personal crypto accounts "insufficient", suspecting the service's management that it does not seek to shed light on what is happening with investor deposits.
Celsius, in turn, can request a prompt hearing in court, or appeal the decision of the Kentucky Treasury Department by filing an appeal.
Earlier, the CEO of the project said that he was ready to tell the regulators what exactly his company earns on, and the departments of Texas, New Jersey, and Alabama have already announced the violation of the law by the Celsius Network.
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