Cryptocurrencies
Voyager, Celsius Implosions Spur Expanded Texas, Alabama Investigations
- Disclosure of borrowers’ information is part of the probe
- States also investigating registrations, withdrawal freeze
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Securities regulators in Texas and Alabama are expanding their investigations into Voyager Digital Ltd. and Celsius Network Ltd. to account for new information arising from the implosions of the two crypto-lending firms.
The two states are examining if Voyager properly disclosed material information on its loans and the creditworthiness of the borrowers. Texas and Alabama are among a coalition of US states investigating Voyager and Celsius, including a recent freeze on customer withdrawals at both firms, according to Joe Rotunda, director of enforcement at the Texas State Securities Board, and Amanda Senn, chief deputy director at the Alabama Securities Commission.