Celsius Becomes Socially Inactive as Legal Pressure Increases

© Reuters Celsius Becomes Socially Inactive as Legal Pressure Increases

• Crypto lending platform Celsius posted an update on its blog page to reassure its community after pausing all withdrawals and deposits last week.
• Celsius’ Twitter (NYSE:TWTR) Spaces and AMAs will be paused to focus on more pressing issues.
• Five US states are actively investigating the withdrawal freeze.

In an attempt to reassure its community after pausing all withdrawals and deposits last week, crypto lending platform Celsius posted an update on its blog page. According to Celsius, they are still very committed to stabilizing their liquidity and operations, even though it might “take time.”

Although the announcement highlighted that the company wants to keep an open dialogue with its community, Celsius mentioned that it will be pausing its Twitter Spaces and AMAs to focus on dealing with the challenges that the company is facing.

Celsius also warned the community to be on the lookout as many social media accounts are falsely claiming association with Celsius.

In related news, CoinGecko posted tweeted that “5 US states are actively investigating the withdrawal freeze” on June 21. Some of these states include Alabama, Kentucky, New Jersey, and Texas.

Joseph Rotunda, the Texas Director of Enforcement, stated that investigations on Celsius started first thing on Monday morning and will be treated as a priority case. In addition to this, the Securities and Exchange Commission (SEC) has already been in contact with Celsius, and so far, the company has been responsive to all questions asked.

News has also surfaced that investors who previously led a Series B funding round for Celsius are unlikely to bail out the struggling company.

However, one of Celsius’ crypto rivals, Nexo, has also been sniffing around and showing an interest in buying out the company’s collateralized loan assets in an attempt to make its customers whole again.

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