US prosecutors and several federal regulators are seeking information from bankrupt cryptocurrency lender Celsius Network.
The investigations, which were disclosed in court documents this month, provide insight into the legal headaches Celsius faces as it seeks to restructure.
The company froze customer withdrawals in June in a bid to stave off user panic, then filed for bankruptcy in July.
Celsius has been one of the most high-profile victims of a sharp sell-off in digital assets that was fueled in part by the collapse of the Terra blockchain in May.
Since filing for insolvency, Celsius has faced user criticism over its marketing and management and is exploring the sale of some or all of its assets.
The firm, which has skyrocketed in popularity for paying people interest on virtual token deposits, was served with a federal grand jury subpoena on June 15, according to a document filed last week by lawyers for Celsius in federal bankruptcy court. from Manhattan. The subpoena came from the United States District Court for the Southern District of New York.
The company has also received inquiries from the Commodity Futures Trading Commission, the Securities and Exchange Commission and the Federal Trade Commission, according to a separate filing from attorneys.
A CFTC inquiry focused on trading activities related to TerraUSD and its sister token, Luna. Another, according to the document, was titled “In the Case of Certain Pending Persons Involved in Fraud and Other Illicit Conduct With Respect to Digital Asset Transactions,” the filing says.
Celsius said in a statement that it is “cooperating with all regulatory inquiries, and regulators are key stakeholders in our reorganization.” The company declined to comment on the details of any queries.
The SEC, CFTC and FTC did not immediately respond to requests for comment. The SDNY declined to comment.
Updated: October 15, 2022, 12:40 pm