The crypto loan Celsius Network collects $ 400 million because the regulatory pressure increases

The cryptocurrency credit platform Celsius Network has 400 million

The financing round was led by West Cap, the fund founded by the former Airbnb and Blackstone Manager Laurence Tosi, and Caisse de Dépôt et Placement du Québec (CDPQ), Canada's second largest pension fund.

The support from large investors comes a month after Celsius has been involved in a broad regulatory approach by the United States against crypto companies that offer customers returns on deposits of digital assets. State authorities in Texas and New Jersey said that Celsius' earnings -strange accounts correspond to a non -registered security offer.

Alex Mashinsky, CEO of Celsius, said the Financial Times, he hoped that the fundraising campaign would calm the regulatory authorities with regard to the stability of its crypto loan business and help to open doors on the mainstream financial markets.

"It is not the $ 400 million. It is the credibility that goes hand in hand with the people who have exhibited these checks," he said.

Celsius, founded in 2017, offers its customers interest of up to 17 percent on deposits of cryptocurrencies. The company pays interest in crypto, also in its own token.

The recent financing round evaluates the company with more than 3 billion

The company has grown quickly last year because the popularity of crypto loan and return strategies has increased. Celsius said that the total assets on its platform reached $ 25 billion this month, compared to $ 10 billion in March, with more than one million registered users.

In September, the public prosecutor's office in New Jersey ordered the company to hire the issue of interest -bearing cryptocurrency products. The Supervisory Authorities of the State of Texas applied for a hearing in February to check whether similar measures should be taken.

Celsius said that all of his operations are completely compliant with the US law.

The occurrence took place after the Securities and Exchange Commission had threatened to sue the crypto exchange Coinbase if it launched a return-like product and the authorities in five states follow another crypto creditor, blockfi.

In addition to checking compliance with the securities regulations, the authorities have also raised questions about the degree of transparency, what cryptoplatt forms do with the deposits of investors to achieve the returns they have paid.

officers from Texas and New Jersey claim that Celsius operates “proprietary trade”, while the company insists that it only uses deposits for lending and crypto mining.

The regulatory pressure on Celsius did not deter its new investors. Tosi from Westcap said: "It is quite typical for [Regulators] to examine some of the market leaders to clarify their own rules. This is part of the process of regulating a new market."

tosi said that his company had carried out a DUE diligence test by Celsius for nine months and was confident in the profitability of Celsius' institutional business, even in the event that the crypto credit for private customers was restricted by the supervisory authorities.

Celsius initially operated from Great Britain, but said in June that it intended to move to the USA and withdraw his application for the registration system of the Financial Conduct Authority for crypto-asset companies.

The accounts submitted in Great Britain for the year until February 2020, the latest available, customer deposits in the amount of 356 million

In the accounts, it is said that Celsius generates income from token sales, the loan of crypto and the "discretion trade" of cryptocurrencies, including "speculative transactions". Mashhinsky said that the ancestors were taken from caution.

"Under no circumstances do we take customer assets and buy or sell it because this is not our business. Our business is to achieve return and.