U.S. State Regulator DFR Claims Celsius Network is “Deeply Insolvent”

The U.S. state of Vermont’s Department of Financial Regulation (DFR) said on Tuesday that cryptocurrency lender Celsius Network is “deeply insolvent.” According to the regulator, the troubled crypto firm lacks the assets and liquidity to honor its obligations to customers and other creditors. Celsius is Deeply Insolvent: US State Regulator In a statement published on Tuesday, The Vermont Department of Financial Regulation (DFR) stated that it has joined a “multistate investigation” into troubled crypto lender Celsius. The DFR noted that the crypto lender has been involved in an unregistered securities offering, selling cryptocurrency interest accounts to retail investors including investors in Vermont. The regulator further alleged that Celsius also lacks a money transmitter license and until recently was operating largely without regulatory oversight. “Due to its failure to register its interest accounts as securities, Celsius customers did not receive critical disclosures about its financial condition, investing activities, risk factors, and ability to repay its obligations to depositors and other creditors,” the regulator said. State Securities Regulators Investigating Celsius State securities regulators in Alabama, Kentucky, New Jersey, Texas, and Washington are looking into Celsius’s decision to suspend customer withdrawal. Last month, Celsius froze withdrawals and transfers, citing “extreme” market conditions. The crypto...