Celsius Had Been Insolvent Since 2019: Vermont Regulator

Sept 08,2022
KingData News: "By increasing its Net Position in CEL by hundreds of millions of dollars, Celsius increased and propped up the market price of CEL, thereby artificially inflating the company's CEL holdings on its balance sheet and financial statements," Vermont assistant general counsel Ethan McLaughlin declared in the Wednesday filing. "Excluding the Company's Net Position in CEL, liabilities would have exceeded its assets since at least February 28, 2019,” he continued. β€œThese practices may also have enriched Celsius insiders, at the expense of retail investors." At the time of Mashinsky's tweet, McLaughlin says, Celsius lacked sufficient assets to repay its obligations and further experienced unrealized losses of approximately $454 million between May 2 and May 22, 2022.
On June 13, digital asset lending platform Celsius Network announced that it would suspend all withdrawals, swaps and transfers between accounts due to extreme market conditions. On the same day, Etherscan data showed that Celsius transferred a total of approximately 111,815 ETH to FTX over the last three days. This indicator provides a real-time tracking of Celsius' funding crisis.
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