Celsius Launches Crypto-Backed Loans in California
- Celsius wasted no time after becoming a licensed Finance Lender in California.
- The company now offers users in the state the ability to request loans in USD or stablecoins against 39 cryptocurrencies.
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According to a press release published on 16 August, Celsius has opened its retail-lending services for customers in California. Earlier this month, the company received its Finance Lender license from the state, enabling it to offer USD and stablecoin loans to California residents.
Borrowers in California will be able to request Celsius loans issued in USD or any of the supported stablecoins against 39 cryptocurrencies at a 0% APR. The minimum request amount for the loans is set at $500, the company explained in the release. Eligible borrowers can already apply for a loan directly through the Celsius mobile app.
The expansion in California is part of Celsius’ continued effort to bring low-cost financial services to the masses. The company’s platform allows users to take out loans instantly without the need to provide proof of income or perform a credit check. Alex Mashinsky, the CEO of Celsius, announced that this was a significant moment both for the company and the entire Celsius community.
“California has one of the largest populations of crypto holders in the world and one of the largest economies in the world. We see this as a major opportunity to continue growing our community and creating more value for HODLers everywhere,” he added.
- The bankrupt crypto lender said that if its reorganization plan is approved, it is ready to start repaying its customers using $2 billion in BTC and ETH by the end of the year.
- If given the green light, Celsius will restart its business under the “NewCo” brand without any funded debt, and with seed funding of up to $450 million.
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- The bankrupt crypto lender has agreed on a settlement with its Series B holders on how to distribute the $25 million from the sale of self-custody platform GK8.
- The majority of funds, $24 million, will be allocated for legal expenses, while the remaining $1 million will be distributed between the Series B holders.
- The U.S. SEC, CFTC, and FTC have all filed separate lawsuits against bankrupt crypto lender Celsius and its former CEO Alex Mashinsky, charging them with multiple counts of fraud.
- Mashinsky was also arrested in New York on Thursday, and later charged by the Department of Justice with securities fraud, commodities fraud, and wire fraud.