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DFPI Sue Crypto Companies Offering Interest Account
The California Department of Financial Protection and Innovation (DFPI) continues to sue companies that offer cryptocurrency interest accounts for violating local regulations. After ordering BlockFi and Voyager to cease operations in the state, the DFPI issued a cease and desist order against cryptocurrency loan company Celsius.
The ruling orders the cryptocurrency lending platform, which is currently in bankruptcy, to cease all future activity involving the sale and marketing of securities in the state of California. Unmentioned risks, according to the DFPI, include the possibility that third-party custody services will lose access to digital assets and lenders will be unable to return Celsius’s collateral.
Furthermore, it states that in the event of a sudden withdrawal request, Celsius may not have enough assets to cover it. This news has slowed the currency’s price rise, which is unsuitable for CEL/USD.
Celsius Skyrockets: Ripple Labs Inc Show Interest in CEL
On August 10, a Ripple Labs Inc. representative stated that the company is interested in potentially acquiring assets from the insolvent cryptocurrency lender Celsius Network. Ripple Labs is embroiled in a major legal battle with the American Securities and Exchange Commission.
Ripple’s lawyers filed documents with the bankruptcy court last week to be heard in the proceedings, and the court accepted the filing. According to the bankruptcy documents, Ripple is not one of Celsius’ significant creditors, but Ripple made the statement in response to Reuters’ questions about the court papers.
What if Ripple Buys Celcius?
If Ripple buys Celcius, the price of CEL/USD could skyrocket. Despite the exchange’s difficulties, such as bankruptcy and reports of the CEO leaving the US, the Celsius community has again banded together on Twitter to combat short positions against its preferred crypto asset.
Thousands of tweets have used the hashtag #CelShortSqueeze to promote long positions in CEL, encourage followers to follow suit, and provide additional information about the short squeeze. According to Logantheinvestor, a Twitter user, the community is “at war with the shorts.”
The Celsius community has worked hard to create a short squeeze on CEL, which benefits CEL/USD. It will make it easier for other investors to buy a large amount of a shorted asset, causing the price to rise rather than fall.
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