Cryptocurrency lender Celsius Network has raised $400 million in equity funding in a move to reassure regulators of the credibility of the business.
Celsius Network CEO Alex Mashinsky told the Financial Times: “It’s not the $400 million. It’s the credibility that comes with the people who wrote those cheques.”Last year, the company had raised $30 million in an equity round led by Tether at a pre-money valuation of $120 million.Celsius did not immediately respond to CoinDesk’s request for comment.The crypto lender 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.The action followed challenges to Celsius by the regulators of Alabama, New Jersey and Texas.
UPDATE (OCT. 12, 12:22 UTC): Adds previous equity funding amount, as well as background on regulatory action.