Celsius Network raises $400 million amid regulatory pressure
Centralized cryptocurrency lending platform Celsius Network announced that it had raised $400 million in investments. As a result, the company's market valuation exceeded $3 billion.
Celsius Network Announces an Investment Led by WestCap and CDPQ at a Valuation More Than US $3 Billion.https://t.co/vFFjJsxRPJ— Celsius (@CelsiusNetwork) October 12, 2021
The round was led by investment firm WestCap and Canada's second-largest pension fund, the Caisse de dépôt et Placement du Québec (CDPQ).
According to the press release, Celsius will use the funds raised to expand its product line as well as "building bridges between the traditional finance and cryptocurrencies."
The platform will use part of the funding to grow its team from 489 employees to nearly 1,000 and to fuel global growth through strategic acquisitions.
As of October 8, 2021, the company had more than $25 billion in assets under management with more than 1 million registered clients on the platform, Celsius said.
The funding round came amid allegations against the platform in the U.S. for selling unregistered securities. Regulators in Texas, Kentucky, Alabama and New Jersey have made claims against the company.
If you sell securities in NJ, you need to comply with NJ’s securities laws. And that includes those operating in the cryptocurrency market.— Acting AG Andrew Bruck (@NewJerseyOAG) September 17, 2021
Our Bureau of Securities has ordered an NJ-based company – Celsius – to stop offering interest-bearing accounts.https://t.co/CqmJXCkMM2
Celsius Network CEO Alex Mashinsky Alex Mashinsky, the founder of the service, called the actions of the authorities disappointing. According to him, the company does not agree with the allegations of violation of the law.
2. We always have, and will continue to, work with regulators in the US and globally to operate in full compliance with the law. Given our commitment to regulatory adherence, we look forward to addressing this matter quickly.— Alex Mashinsky ©️ (@Mashinsky) September 17, 2021