The Celsius Network has been indicted in Kentucky for breaking unregistered securities laws for the fourth time.
According to state finance officials, interest-bearing accounts supplied on behalf of the corporation to its clients violate government securities law. The Securities Division of Kentucky’s Department of Financial Institutions announced this by issuing a related order prohibiting a cryptocurrency company from operating in the state.
Regulators are vehemently opposed to the Celsius Network team’s position on interest income collected by clients through cryptocurrency accounts, which the business refers to as “reward” and “commission received for investing.” Legislators feel that all investors who use the Celsius Network‘s “generous” offering and accounts are not adequately safeguarded under the law. In addition, the information offered by the company to its clients concerning personal crypto accounts was deemed “insufficient” by Kentucky authorities, who fear that the service’s administration is not trying to shed light on what is going on with investment funds.
Celsius, in turn, can ask for a brief hearing in court or file an appeal against the Kentucky Treasury Department’s decision.
The project’s CEO previously stated that he was willing to notify regulators exactly what his company makes on, and Texas, New Jersey, and Alabama departments have already announced that the Celsius Network has broken the law.