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Crypto Lender Celsius Told to Stop Offering Accounts in Kentucky

  • State says Celsius offered customers unregistered securities
  • Labels the accounts as ‘an unprecedented risk to consumers’
Alex Mashinsky, chief executive officer of Celsius Network, during a conference in Beverly Hills, in 2018.
Alex Mashinsky, chief executive officer of Celsius Network, during a conference in Beverly Hills, in 2018.Photographer: Dania Maxwell/Bloomberg
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Kentucky’s securities regulator on Thursday ordered giant crypto lender Celsius Network to cease and desist from offering its interest paying accounts in the state, joining three other states that last week took similar actions.

In the emergency order, the Kentucky Department of Financial Institutions said Celsius offered customers unregistered securities in violation of state law and didn’t sufficiently disclose to customers what the firm did with their deposits, calling the accounts “an unregulated market that represents an unprecedented risk to consumers.” The order said Celsius can request an emergency hearing to challenge the decision or can appeal it in court.