Federal regulators and US prosecutors are requesting data from the insolvent cryptocurrency lender Celsius Network.
The inquiries, which were made public in court documents this month, give an idea of the difficulties Celsius is having with the law as it tries to restructure.
To prevent a user panic run, the company froze customer withdrawals in June. The following month, the company filed for bankruptcy.
One of the most well-known victims of the sharp selloff in digital assets, which was sparked in part by the collapse of the Terra blockchain in May, has been Celsius.
Since announcing its insolvency, Celsius has been under fire from consumers for the marketing and management of the company, and it is now considering selling part or all of its assets.
According to a letter submitted last week by Celsius’ attorneys in federal bankruptcy court in Manhattan, the company, which shot to fame for giving customers interest on virtual token deposits, got a federal grand jury subpoena on June 15. The US District Court for the Southern District of New York issued the summons.
According to a different filing from the attorneys, the corporation also got questions from the Federal Trade Commission, Securities and Exchange Commission, and Commodity Futures Trading Commission.
One CFTC investigation concentrated on trading operations involving TerraUSD and Luna, its sibling cryptocurrency. Another one with the heading “In the Matter of Certain Pending Persons Engaged in Fraud and Other Unlawful Conduct With Regard to Digital Asset Transactions,” the document claims “the document stated.
In a statement, Celsius said that it is “cooperating with all regulatory inquiries and that major partners in our reorganization are regulators.
Requests for comment were not immediately answered by the SEC, CFTC, or FTC. SDNY declined to make any comments.
