Crypto Lender Celsius Network Raises $400M in Bid to Reassure Regulators

Cryptocurrency lender Celsius Network has raised $400 million in equity funding, the company said.

The investment will help reassure regulators of the credibility of Celsius Network’s business, CEO Alex Mashinsky told the Financial Times, which reported the investment earlier Tuesday.
“It’s not the $400 million. It’s the credibility that comes with the people who wrote those cheques.”
Last year, the company raised $30 million in an equity round led by Tether at a pre-money valuation of $120 million.
The crypto lender has been subject to multiple moves by state regulators in the U.S, in response to its lending products.
Last month, Celsius Network received a cease-and-desist order from Kentucky’s securities regulator over interest earned on certain crypto accounts. The regulator says the accounts violate securities laws and fail to disclose to customers what happens to their deposits and whether they are protected.
The action followed challenges to Celsius by the regulators of Alabama, New Jersey and Texas.

UPDATE (OCT. 12, 12:22 UTC): Adds previous equity funding amount, as well as background on regulatory action.

UPDATE (OCT. 12, 14:09 UTC): Changes sourcing to company statement.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.

Follow @JamieCrawleyCD on Twitter

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.