Kentucky sends an injunction to the crypto loan platform Celsius via interest-bearing accounts-regulation

six days ago, the securities supervisory authorities from New Jersey and Texas acted against the cryptocurrency credit platform Celsius. In addition, the Alabama Securities Commission joined and submitted an injunction against Celsius. Now the state of Kentucky follows up and has submitted an injunction against the crypto loan platform.

kentucky sends a injunction to Celsius

Four states in the USA have a problem with the cryptocurrency credit platform Celsius and the interest-bearing accounts of the company. The same problems have also affected the crypto loan blockfi, since several states sent orders to the company via its interest-bearing accounts. After New Jersey, Texas and Alabama against Celsius have taken out hard, Kentucky now tells the company that it has to stop "requesting or selling" its interest -bearing accounts of Kentucky.

The department is known that the company offers securities in the form of investment contracts against depositing assets in the company. These investment contracts enable passive investors to achieve profits in the form of interest on the assets stored by the company and are considered securities within the meaning of the law.

security supervisory authorities believe that users of crypto interest accounts are "exposed to additional risks"

In contrast to Blockfi, the Celsius network not used twitter or it is blog channel to meet the allegations of the state supervisory authorities. During the co-founder of Celsius recently discussed with Facebook authentication method, at least at the time of the writing was not brought up. The Kentucky securities monitor is of the opinion that "Celsius investors are exposed to additional risks".

All four states use similar arguments and claim that the same risks are associated with Celsius accounts. Blockfi also had themes with supervisory authorities in New Jersey and vermont , Texas, alabama , and kentucky . In addition, state securities authorities can take action against other cryptoplatt forms that offer digital currency accounts that bear interest.

if a bloomberg reporter Kentucky's injunctive relief, the company did not answer. However, when the reporter contacted the company last week, a Celsius spokesman said that the company was "disappointed that the lawsuits were submitted and contradicted the allegations".

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