Celsius raises $400 million amid mounting regulatory pressure


Crypto lending firm Celsius Network has raised more than $400 million in a funding round led by growth equity firm WestCap, the company announced Tuesday. 

The raise—which values the firm at $3 billion—has closed as state regulators across the US are scrutinizing the company's offerings. In September, New Jersey's securities regulator ordered crypto lending platform Celsius to halt offerings of its interest accounts in the state. Subsequently, regulators in Texas, Alabama and Kentucky launched inquiries or ordered similar halts.

That scrutiny hasn't appeared to halt Celsius growth, with the firm reporting more than $25 billion assets under its stewardship. 

"We are pleased by the response we received from many leading financial investors during this fundraise. The partnership with WestCap and CDPQ puts Celsius in a position to grow and further its mission to leverage blockchain technology to connect and decentralize the traditional finance," commented Alex Mashinsky, CEO of Celsius Network.

With fresh capital in hand, Celsius plans to expand its team from 486 employees to more than 1,000, according to a release. It also plans to make "strategic acquisitions."

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

The Era of dFMI for Institutional Digital Asset Markets

Post-trade in capital markets today operates primarily based on provision of balance-sheet to off-set counterparty risk, either directly or indirectly, via settlement agents, CCPs and CSDs etc.  The issues with this ‘hub and spoke’ model are well known, including the resulting massive duplication of data, bifurcated processes, concentration of risk and subsequent deployment of capital and resources that could be better utilized. 
Read Full Story
Sponsored Post

Retail traders are here to stay, says eToro's US CEO

On this episode of The Scoop, eToro's newly appointed US lead Lule Demmissie explained why she doesn't see retail's newfound presence in the market subsiding anytime soon and how eToro plans to capitalize on growing the business across cryptocurrencies and stock trading.
Read Full Story
Jan 26, 2022, 4:23PM UTC