Cryptocurrency lender Celsius Network has raised $400 million in equity funding in a move to reassure regulators of the credibility of the business.
- The investment was led by equity firm WestCap and Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), the Financial Times (FT) reported Tuesday.
- Celsius Network has been subject to multiple moves by state regulators in the U.S in response to its lending products.
- Last month, Celsius Network received a cease-and-desist order from Kentucky’s securities regulator over interest earned on certain crypto accounts. The regulator says the accounts violate securities laws and fail to disclose to customers what happens to their deposits and whether they are protected.
- CEO Alex Mashinsky told the FT: “It’s not the $400m. It’s the credibility that comes with the people who wrote those cheques.”
