Celsius Receives Formal Request for Testimony from Federal Jury

https://www.investing.com/news/cryptocurrency-news/celsius-receives-formal-request-for-testimony-from-federal-jury-2913096

• A recent report hinted that a US federal court issued Celsius a formal summons.
• Additionally, the SEC, CFTC, and FTC filed inquiries about the company.
• Celsius states that it is working with all regulatory inquiries.

According to a new finding by Bloomberg, the insolvent cryptocurrency lender Celsius Network Ltd. is under investigation by US authorities and various federal regulators. The probes, made public in court documents this month, give an insight into Celsius’s difficulties with the law as it tries to restructure.

Last week, a paper presented by lawyers during Celsius’ bankruptcy proceedings revealed that the company received a “federal grand jury subpoena” from the US District Court for the Southern District of New York. Contextually, a federal grand jury subpoena is a formal request for testimony, documents, or both issued by a federal district court judge at the request of a federal prosecutor.

Bloomberg report also hinted that the company received inquiries from other financial regulatory bodies, including Commodity Futures Trading Commission, the Securities and Exchange Commission, and Federal Trade Commission. Although Celsius said in a press statement that it is “cooperating with all regulatory inquiries, and regulators are key stakeholders” in their reorganization.

Recall that Celsius stopped client withdrawals in June to prevent a user panic run. The following month, the company filed for bankruptcy. Celsius has been one of the most well-known casualties of the dramatic selloff in digital assets, partially caused by the failure of the Terra blockchain in May. The bankrupt business came under fire from consumers for its failed marketing and management. Recent reports suggest that the company is considering selling part or all of its assets to repay customers. Furthermore, Coin Edition reported last month that Celsius creditors were lamenting that the bankruptcy process was overly customer-focused.