Celsius’ Path to Recovery Hindered by SEC Challenges: Report


Celsius’ Path to Recovery Hindered by SEC Challenges: Report

The path to recovery for Celsius, a crypto-focused lending and payments platform, is being hindered by challenges from the U.S. Securities and Exchange Commission (SEC), according to a report from TheBlock.

The report noted that the SEC has been “aggressively examining” Celsius’ activities and seeking more information from the company. TheBlockStates that the SEC has raised questions about the legal basis of the company’s token offering, which raised around $50 million in 2018.

TheBlock also noted that Celsius is facing potential legal issues in other countries, such as Canada. It has reportedly been asked by Canada’s securities regulator to provide documents related to its token offering, and the company has petitioned for a court order to quash the request.

The report attributed the SEC’s heightened scrutiny of Celsius to its success in the crypto market. For example, the company’s coin, the CelsiusCoin (CEL) is currently the 16th-largest asset on CoinMarketCap, with a market cap of over $1 billion.

It is currently unclear if the SEC will ultimately challenge Celsius’s activities. However, it appears that the regulatory agency is closely watching the company, and any decisions it makes could set a precedent for the industry.