India freezes digital assets WazirX, linked with Binance The developers of Shiba Inu have announced a new mobile game Binance received a subpoena over Elon Musk's refusal to buy Twitter The New York authorities fined the crypto platform Robinhood for $30 million North Korean hackers forge CVs to join U.S. crypto companies A new unknown investor bought bitcoins for $3 billion Binance employee claims loss of 90% of customers and billion dollars in revenue MetaMask users face a phishing attack Unknown hacked almost 8 thousands crypto wallets on Solana

Vermont regulator declares Celsius 'deeply insolvent'

Vermont regulator declares Celsius 'deeply insolvent'

The Department stressed that the statements of the company and top management about the safety of users' funds and the ability to fulfill withdrawal obligations “do not correspond to reality.”

According to the Vermont Department of Financial Regulation (DFR), “Celsius has used customer funds for a variety of risky and illiquid investments, trading and lending activities. […] Additionally, some of the assets held by Celsius are illiquid […]”.

The DFR said user funds served as collateral for additional loans “for the purpose of implementing investment strategies.” According to the regulator, the company's assets are not enough to cover its unpaid liabilities.

The department added that the platform operates in many jurisdictions, including Vermont.

“The Department believes that Celsius participated in an unregistered securities offering [...]. This means that, until recently, Celsius was operating without regulatory oversight,” officials said.

They claimed that the platform's customers did not receive important information about its financial condition, risk factors, and ability to repay their obligations. DFR said it had joined the investigation related to the issues mentioned above.

Recall that on June 13, Celsius suspended withdrawals, exchanges, and transfers between accounts.

Subscribe to our Telegram channel for the most relevant, interesting, and informative news from the crypto industry.

0
Is there an error in the article?
To report