Celsius 'misled' investors about crypto lender's financial health, vermont regulator alleges

09/07 14:44

According to CoinDesk, crypto lender Celsius misled investors about its financial health, using its CEL token to bolster its balance sheet and at times using new investor funds to repay old investors, the Vermont Department of Financial Regulation alleged in a new filing Wednesday. The department, one of several state regulators probing Celsius amid its ongoing bankruptcy proceedings, filed in support of the U.S. Trustee's office motion to appoint an independent examiner, alleging Celsius has not been transparent about its financials. "During the course of the multistate investigation, it has become clear that Celsius, through its CEO Alex Mashinsky and otherwise, made false and misleading claims to investors about, inter alia, the company’s financial health and its compliance with securities laws, both of which likely induced retail investors to invest in Celsius or to leave their investments in Celsius despite concerns about the volatility of the cryptocurrency market," the filing said. Celsius was unable to pay repay investors as far back as July 2021, despite what CEO Alex Mashinsky claimed on Twitter or said in interviews, the department alleged.
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