9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
Crypto lending platform Celsius Network is “largely bankrupt” – lacking the liquidity to meet its obligations. This was specified by the Vermont Department of Financial Regulation (DFR). “Celsius
Crypto lending platform Celsius Network is “largely bankrupt” – lacking the liquidity to meet its obligations. This was specified by the Vermont Department of Financial Regulation (DFR).
“Celsius used client funds for a variety of risky and illiquid investments, trading and lending. […] Also, some of Celsius’ assets are illiquid. […]”, the message says.
According to DFR, user funds acted as collateral for additional loans “to implement investment strategies”. According to the regulator, the company’s assets are not sufficient to cover outstanding debts.
The agency added that the platform operates in multiple jurisdictions, including Vermont.
“The Department believes Celsius is involved in the unregistered supply of securities. […]. “This means Celsius has until recently operated largely without regulatory oversight.”
According to them, customers of the platform did not receive important information about their financial condition, risk factors and ability to repay their obligations. DFR stated that they participated in the investigation regarding the above issues.
The department stressed that the company’s and senior management’s statements about the security of user funds and its ability to meet its withdrawal obligations “do not correspond to reality”.
On June 13, Celsius suspended withdrawals, swaps and transfers between accounts.
Attorney Adam Levitin said the company’s bankruptcy was almost inevitable. According to him, the management of the platform decided to bet on “adventure with the resurrection”.
On July 7, Celsius fully repaid the loan in the MakerDAO DeFi protocol and pulled a total of 23,962 WBTC collateral amounting to ~$490 million. Just a few hours later, the platform transferred 24,463 WBTC to the address of the FTX crypto. exchange.
Recall that Arkham analysts estimated the Celsius loss in DeFi and NFT investments at $390 million.
Learn more about what happened to Celsius on ForkLog cards and how the event impacted the market.
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Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
