BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home Crypto

Celsius Lacks Liquidity and Assets for Account Holders: Vermont DFR

BlockNews Team by BlockNews Team
July 13, 2022
in Crypto
Reading Time: 2 mins read
A A
Celsius Lacks Liquidity and Assets for Account Holders: Vermont DFR
1
SHARES
11
VIEWS
Share on TwitterShare on Reddit

According to the Vermont Department of Financial Regulation, crypto lending platform Celsius “is severely bankrupt,” stating that the firm lacks the assets and liquidity to pay its debts to account holders and other creditors.

You might also like

Mark Cuban Slams Gold Hoarders, Defends Bitcoin

Crypto Exchanges Benefit from US Banking Crisis: JPMorgan

The UAE Central Bank Signs Deal for CBDC Strategy

The DFR stated, “Celsius deployed customer assets in various risky and illiquid investments, trading, and lending activities.”

The most recent liquidity crisis in crypto has prompted Celsius to enter bankruptcy. It halted withdrawals on June 12 and reduced staff to deal with its financial situation, which it later advised restructuring experts.

Celsius Claimed They Already Paid the Debts

On Tuesday, the lender announced that it had entirely paid off its debt on the DeFi protocol Aave, releasing $26 million in tokens as part of its latest debt restructuring action. It also moved $418 million in staked ether to an unknown wallet.

The regulatory document said that the company was now free of debt and would have no financial obligations in the immediate future. Last week, according to reports, Celsius had fully paid off and redeemed its loan on Defi loan protocol Maker, freeing up $440 million in collateral pledged against the loan. On Tuesday, reports also said that the crypto lender reduced its debts “by $95 million on Aave and freed up 410,000 stETH tokens, worth $426 million” as of this writing.

The DFR alleges that Celsius has engaged in an “unregistered securities offering” of cryptocurrency interest accounts to individual investors.

The DFR also claims that Celsius lacks a money transmitter license, which it interprets as implying that Celsius was operating largely without regulation until all the bad news surrounding it. Additionally, the lender did not register its interest accounts as securities, resulting in insufficient risk disclosures for depositors and other creditors. Because of the consecutive issues with Celsius, DFR collaborated with other investigators to look into the lender’s other potential hidden matters.

Tags: cryptoDeFivermont
TweetShareShare

Recommended For You

Mark Cuban Slams Gold Hoarders, Defends Bitcoin

by BlockNews Team
March 27, 2023
0
mark cuban

Mark Cuban and Bill Maher hold opposing views on Bitcoin vs gold investment Cuban argues in favor of Bitcoin's digital ledger and stored value, while Maher prefers gold's...

Read more

Crypto Exchanges Benefit from US Banking Crisis: JPMorgan

by BlockNews Team
March 27, 2023
0
JP Morgan

The collapse of three major banks in the US may have opened up an opportunity for crypto exchanges all over the world, according to JPMorgan Tether took the...

Read more

The UAE Central Bank Signs Deal for CBDC Strategy

by BlockNews Team
March 27, 2023
0
CBUAE

UAE to release a CBDC  and begin its first phase very shorty. The CBDC strategy was first unveiled in February as part of the central bank’s program to...

Read more

‘Surgical Removal’ of Crypto Will Only Weaken USD Dominance, Commentators Say

by BlockNews Team
March 27, 2023
0
crypto dominance

The US banking system will only become more isolated as a result of the surgical removal of cryptocurrencies, which will also damage the dollar's status as the world's...

Read more

$40 Billion Fraud Scheme of Terra-Luna Founder Do Kwon Revealed

by BlockNews Team
March 27, 2023
0
terra luna

Founder of now collapsed stablecoin Terra Luna, Do Kwon, finally arrested; authorities claim he has not been fully identified.  The Securities and Exchange Commission accused Do Kwon of...

Read more
Next Post
Singapore Shows FUD as Market Continues to Decline. What Will Happen to their Future Crypto Hub?

Singapore Shows FUD as Market Continues to Decline. What Will Happen to their Future Crypto Hub?

Related News

crypto market

The Future Of The Crypto Market – Insights From Santiment

March 14, 2023
New York Passes Bill Banning Crypto Mining in Efforts to Fight Environmental Impact

New York Passes Bill Banning Crypto Mining in Efforts to Fight Environmental Impact

June 4, 2022
Bitcoin-Conference

Bitcoin Amsterdam 2022 : The First European-Focused Event on Hyperbitcoinization

October 6, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Mark Cuban Slams Gold Hoarders, Defends Bitcoin March 27, 2023
  • Crypto Exchanges Benefit from US Banking Crisis: JPMorgan March 27, 2023
  • The UAE Central Bank Signs Deal for CBDC Strategy March 27, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?