The Department of Financial Institutions of Kentucky has accused crypto lending service Celsius Network of selling unregistered securities.
According to the regulator, Celsius Network's proposals violate state law. The service failed to disclose to its customers information about what was happening with their deposits, the department has added.
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The company can request an emergency hearing in order to challenge the decision or appeal it in court.
Regulators in Alabama, Texas and New Jersey have previously filed charges against Celsius Network. The service's founder, Alex Mashinsky, has called the authorities' actions "disappointing." According to him, the company does not agree with the allegations of law violation.