Vermont has opened Investigation To the Celsius network, warning residents to be wary of investing in more CEL tokens.
The Vermont Treasury Regulatory Authority (DFR) said Celsius was “bankrupt” and accused him of mismanagement of his clients’ funds.
“Celsius is in bankruptcy and lacks the assets and liquidity to meet its obligations to account holders and other creditors.”
According to the statement, financial regulators believe that Celsius is engaged in “providing unregistered securities” and lacks a “remittance license”. This means that the company operated in the state without regulatory oversight.
Financial regulators have revealed that they have participated in a multilateral investigation in Celsius.
Other US states are investigating Voyager and Celsius
Bloomberg report Regulators in Texas and Alabama are investigating the operation of Celsius and Voyager Digital.
According to Bloomberg, state officials are investigating the businesses of the two companies to see if they meet disclosure requirements and if the products they offer are eligible for securities.
Joe Rotunda, Executive Director of the Texas Securities Commission, said:
“What we are seeing now is that many of these crypto lenders may not fully disclose what they were doing behind the scenes with investor money.”
Amandasen, Chief Deputy Director of the Alabama Securities Commission, also endorsed this, saying:
“We’re investigating these companies and trying to figure out what happened and why. We’re making inquiries. It’s still early days, but we’re telling state investors. I take responsibility on my behalf. “
Celsius showed signs of the first problem after dismissing some staff and freezing customer withdrawals. Since then, other crypto companies such as Voyager and CoinFlex have frozen their withdrawal.
Meanwhile, Voyager filed for Chapter 11 bankruptcy. It revealed that Alameda Research and Three Arrows Capital have nearly $ 1.3 billion in outstanding debt.
Celsius is paying off the debt
Celsius I paid a part of that debt For DeFi protocol. He recently repaid his debt to Aave and regained $ 410 million in bet Ethereum collateral. It still owes Aave about $ 8.5 million.
This is similar to what happened last week when it paid off all of its $ 228 million debt to the Maker Protocol and released $ 440 million worth of wrapped Bitcoin (wBTC) pledged as collateral. increase.
However, the compound still has a debt of about $ 50 million in USDC, and Aave and the compound are locked with $ 227 million worth of collateral.
