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.
Notwithstanding the extreme market volatility, Celsius has not experienced any significant losses and all funds are safe.
— Alex Mashinsky (@Mashinsky) May 11, 2022
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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