Vermont’s Department of Financial Regulation (DFR) alleged that troubled cryptocurrency lender, Celsius Network is “deeply insolvent” and does not have enough “assets and liquidity to honor its obligations to account holders and other creditors.”
The state regulatory warning on Tuesday further added that “Celsius deployed customer assets in a variety of risky and illiquid investments, trading, and lending activities.”
It further alleged that the crypto startup compounded its risks by using customer deposits as borrowing collaterals for supporting its leveraged investment strategies.
“Additionally, some of the assets held by Celsius are illiquid, meaning they may be difficult to sell, and a sale may result in financial losses. The company’s assets and investments are probably inadequate to cover its outstanding obligations
