It’s been just revealed that the crypto lending platform Celsius Network managed to raise $400 million in new equity funding from investors amidst massive scrutiny from the US regulators for crypto businesses.
It’s also important to mention the fact that according to Financial Times, the funding round was led by WestCap.
Just in case you did not know, this is the fund set up by former Airbnb and Blackstone executive Laurence Tosi, and Caisse de dépôt et placement du Québec (CDPQ), Canada’s second-largest pension fund.
Celsius and regulatory issues
This massive backing from major investors comes a month after Celsius was drawn into a broad US regulatory crackdown on crypto companies that has been offering customers yields on deposits of digital assets, FT notes as well.
It’s also important to reveal the fact that the state authorities in Texas and New Jersey said that Celsius’ yield-bearing accounts amount to an unregistered securities offering.
Alex Mashinsky, Celsius chief executive, told the online publication mentioned above that he hoped the fundraise would reassure regulators about the stability of his crypto lending business.
More than that, he is also aiming towards helping open doors in the mainstream financial markets. Check out what’s said.
“It’s not the $400m. It’s the credibility that comes with the people who wrote those cheques.”
FT publication also noted that Texas and New Jersey officials claim Celsius engages in “proprietary trading.”
On the other hand, the company insists it uses deposits only for lending and crypto mining.
This whole regulatory pressure on Celsius did not deter its new investors. Financial Times mentions something that Tosi of WestCap said:
“It’s quite typical for [regulators] to begin examining some of the market leaders in order to clarify their own rules. This is part of the process of regulating a new market.”
Stay tuned for more exciting news, and make sure to keep your eyes on the market.