Five U.S. state securities commissions have begun investigating the suspension of customer withdrawals from crypto lending platform Celsius “as a “priority”. Reuters writes about it.

Joseph Rotunda, executive director of the Texas Securities Board, reported on the investigation. According to him, the company’s activities have been “under the gun” for almost a year.

“I am extremely concerned that clients may need immediate access to their assets but will not be able to withdraw their funds. Failure to do so could have significant financial consequences.”said Rotunda.

Regulators in Kentucky, New Jersey, Washington, and Alabama have taken similar steps. This was stated by Joseph Borg, director of the second state’s Securities Commission.

“We’ve been working with Celsius for a while. We requested much more information. We decide if BlockFi compensation payment model or not”, — the official said in an interview with CoinDesk.

In January 2022, media reported an SEC investigation into landing service providers Voyager, Gemini and Celsius Network. The regulator is allegedly concerned with the legality of providing interest on deposits in digital assets.

On June 13, Celsius suspended withdrawals, clearing and transfers between accounts “due to extreme market conditions”. But analysts have suggested that the real reason for what happened was a “liquidity crisis” as the company was unable to pay customers.

On May 15, The Wall Street Journal reported that Celsius has hired attorneys from Akin Gump Strauss Hauer & Feld for a possible financial restructuring.

The journalists emphasized that the initial purpose of the platform is to raise capital from investors. According to The Block, the company turned to financial conglomerate Citigroup to address this issue.

Earlier, the expert described Celsius’ bankruptcy as almost inevitable.

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