Celsius’ Path to Recovery Hindered by SEC Challenges: Report
The path to financial recovery for Celsius, a crypto lending platform, could be hindered after the U.S. Securities and Exchange Commission (SEC) recently challenged the firm’s securities offering.
According to a Reuters report, Celsius has been raising cash from investors in order to cover negative returns from its lending operations. The report, citing sources familiar with the matter, also states that the SEC was challenging the firm’s proposed securities sale.
The firm has reportedly planned to raise around $50 million, and has indicated that the funds would be used to support its growth during the Covid-19 pandemic.
According to the report, Celsius has already filed a sale notice with the SEC in the United States and Canada. The SEC has reportedly been challenging the firm’s claim that it can lawfully sell securities outside of the U.S.
Celsius has reportedly been attempting to make a comeback after a large number of its users reportedly withdrew funds from the platform earlier this year. The SEC’s challenge could be a major blow to the firm’s already precarious financial situation.