Celsius Network Raises $400 Million in Funding Round Despite Regulatory Scrutiny
- Celsius Network has raised $400 million in a funding round.
- The latest raises gives Celsius a valuation of over $3 billion.
Celsius Network, a cryptocurrency lending platform, has successfully raised $400 million, placing the value of the company now over $3 billion, according to the Financial Times.
Despite regulatory scrutiny, Celsius’ CEO Alex Mashinsky is reportedly more excited about the legitimacy of the funding round.
Regulatory Controversy
The funding round—and its perceived—has come at a time of regulatory controversy for the company. The New Jersey Bureau of Securities filed a cease-and-desist order against Celsius to stop offering high-interest accounts to New Jersey customers by the end of October.
On the same day, the Texas State Securities Board ordered Celsius to appear for a hearing on February 14, 2022, the Texas authority has threatened to issue its own cease-and-desist order as well.
Regulators are primarily concerned with Celsius’ crypto interest accounts, which allow customers to receive interest rates that are far higher than at a traditional bank.
Investor Reaction
Regulators are not concerned with Celsius’ investors, who do not appear to be affected by the regulatory