Celsius Network, a cryptocurrency earning and borrowing platform, has announced the close of a $400 million funding round led by WestCap, a growth equity firm, and Caisse de dépôt et placement du Québec (CDPQ), a Canadian pension fund. The latest funding round pushes the company's valuation of more than $3 billion.
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In a press release, the company said it plans to use the proceeds from this investment to continue expanding its offering and products with focus on institutional investors. Part of the proceeds would also be used to double Celsius' staff from 486 to approximately 1,000 employees.
"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," said Alex Mashinsky, CEO of Celsius Network.
The funding comes after the Department of Financial Institutions of Kentucky accused Celsius of selling unregistered securities.
The regulator says Celsius Network's services violate state law as the company had service failed to disclose to its customers information about how it manages their deposits. Regulators in Alabama, Texas and New Jersey also filed the same charges against Celsius Network. The service's founder, Alex Mashinsky, called the authorities' actions "disappointing."
Earlier this summer, financial watchdog of Vermont joined a group of regulators who publicly accused another cryptocurrency platform focused on interest-earning services — BlockFi — of the same offence.
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