Vermont regulator accuses Celsius of defrauding investors and manipulating the CEL token

Vermont regulator accuses Celsius of defrauding investors and manipulating the CEL token

Vermont regulator accused Celsius of defrauding investors and manipulating the CEL token

Crypto-lending platform Celsius Network was misleading investors about its financial condition. The company used the CEL token to strengthen its balance sheet, and the funds of new customers to pay off obligations to existing ones, the Vermont Department of Financial Regulation (DFR) said.

https://twitter.com/Mashinsky/status /1421563459251093504?ref_src=twsrc%5Etfw

< p>According to DFT, in just 10 days in May 2022, Celsius suffered losses in the amount of more than $450 million. The department emphasized that in connection with these facts, an independent expert should investigate the activities of the platform. 

13 In July, Celsius filed for Chapter 11 bankruptcy in a New York City court. The company reported that its liabilities exceed the assets on the balance sheet by almost $1.2 billion.

According to the revised estimate, the “hole” in the platform's balance sheet was $2.85 billion.

Recall that in August 2022, the US Office of Trustees announced “numerous questions” to the leadership of Celsius.

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