Cryptocurrency Lenders Celsius network CEL/USDwhich filed for bankruptcy earlier this year, told a U.S. bankruptcy court that it faces multiple “federal investigations.”

What happened: Celsius was the subject of enforcement proceedings or investigations in at least 40 states, the Southern District of New York said. Bloomberg reported.

The USA Securities and Exchange Commission, Commodity Futures Trading Commissionand Federal Trade Commission I sent inquiries to the office.

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Celsius gained popularity by paying people interest on their cryptocurrency deposits, however Withdrawals frozen in June after risky bets backfired and cryptocurrency prices plummeted.

The platform made it easier for users to earn Bitcoin BTC/USDtake out crypto-backed loans and wager their coins.

Creditors have sent letters to the judge in charge of the case, accusing Celsius and its former CEO Alex Maschinsky misleading them about the risks involved in investing their cryptocurrencies in the company.

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