Crypto Lender Celsius Misled Investors, Vermont Regulator Says
Celsius Network, the bankrupt cryptocurrency lender, may have hidden its financial trouble from its investors and "engaged in the improper manipulation of the price" of the platform's tokens to boost the company's balance sheet and financials, according to a new court filing. From a report: The Vermont Department of Financial Regulation submitted the filing on Wednesday in support of the United States Trustee's motion to appoint an independent examiner. The trustee handling Celsius's bankruptcy case previously said that it is seeking an examiner to help get additional information and clear up "confusion and anxiety." The latest filing shows that, based on a preliminary analysis of financial records, Celsius posted "massive losses" in the first seven months of 2021 and experienced "two material adverse events" in June and July of that year. And that the company had kept its losses from investors, despite state and federal securities laws requirements to disclose its financial statements. Moreover, the filing also alleged that Celsius may have manipulated the price of its CEL token. The move may have "artificially" inflated the company's CEL holdings on its balance sheet. The company "never earned enough revenue to support the yields being paid to investors," the filing said.
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