• BTC Dominance: %
XBT.Market
Advertisement
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us
No Result
View All Result
XBT.Market
No Result
View All Result
Home Bitcoin

Vermont becomes the sixth US state to launch investigation against Celsius

Jon Hartney by Jon Hartney
July 13, 2022
in Bitcoin, Blockchain, Business, Market
0
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

The state financial regulator alleged that Celsius violated state security laws by offering high crypto interest rate accounts to customers and unethically using clients’ funds to invest in illiquid products.

Vermont’s Department of Financial Regulation (DFR) issued a warning against troubled crypto lending firm Celsius on Tuesday, reminding users that the crypto lending firm is not licensed to offer its services in the state.

The DFR alleged that Celsius is “deeply insolvent” and doesn’t possess “assets and liquidity” to fulfill its obligations towards the customers. The state regulator accused the crypto lender of mismanaging customers’ funds by allocating them towards risky and illiquid investments.

Related articles

Bitcoin derivatives data shows room for BTC price to move higher this week

January 23, 2023

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

January 22, 2023

“In addition to the ordinary risks of cryptocurrency investing, holders of Celsius interest accounts were also exposed to credit risk that Celsius would not be able to return their tokens upon withdrawal.”

The financial regulator noted that the high crypto interest account offered by Celsius qualifies as unregistered security and the firm also lacks a money transmitter license to offer any investment services in the state.

DFR believes Celsius operated without any regulatory oversight and exposed retail customers to high risks investments resulting in heavy losses for them. Keeping these concerns in mind, the state financial regulator has joined the multi-state investigation against the troubled crypto lender.

“The Department believes Celsius has been engaged in an unregistered securities offering by offering cryptocurrency interest accounts to retail investors. Celsius also lacks a money transmitter license. The Department has joined a multistate investigation of Celsius arising from the above concerns.”

Vermont became the sixth state in America to open an investigation into Celsisus’s crypto interest rate accounts. As Cointelegraph reported earlier, Alabama, Kentucky, New Jersey, Texas and Washington opened investigations into the troubled crypto lender after it paused all withdrawals, swaps and transfers between accounts on June 13, just a day after its chief executive officer Alex Mashinsky claimed all is well with the firm.

Related: Risky business: Celsius crisis and the hated accredited investor laws

Celsius became one of the key crypto lenders in the industry during the bull market, managing billions in customers’ funds and churning out high interet rates for account holders. While regulators and analysts did warn about risks associated with such high lending products, crypto lenders continued to play it down claiming it was a ploy of greedy bankers.

A recent report in Financial Times highlighted that Celsius aggressively bet with client funds, putting them in risky decentralized finance (DeFi) yield products. The crypto lender’s compliance team had flagged concerns as early as February 2021, where internal documents showed that employees were allowed to invest in funds without gaining explicit permission and without any compliance checks. This reportedly helped the firm to disguise its losses.

However, with the advent of the bear market in May initiated by the Terra ecosystem crash, the faults started to show up. Several reports have highlighted that market conditions are not the only reason for the downfall of crypto-lending firms like Celsius. In fact, it was mismanagement and unethical business practices on their part that have brought them to this point.

Celsius is currently hiring new legal teams and working on restructuring plans to avoid bankruptcy. The firm has also worked on repayment of several DeFi loans over the past couple of weeks, having paid 20 million in USD Coin (USDC) to Aave on July 11 and paid the remaining $41.2 million debt to Maker protocol on Thursday, freeing up more than $500 million in Wrapped Bitcoin (wBTC) collateral.

Read Entire Article
Tags: CointelegraphCryptocurrencyInvestmentMining Bitcoin
Share76Tweet47

Related Posts

Bitcoin derivatives data shows room for BTC price to move higher this week

by Jon Hartney
January 23, 2023
0

BTC options data suggest that the Bitcoin price rally still has legs, even with wider economic concerns growing and the

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

by Jon Hartney
January 22, 2023
0

BTC could take a break from its sharp rally and if BTC price bounces off underlying support, APE, MANA, AAVE...

Genesis bankruptcy case scheduled for first hearing

by Jon Hartney
January 22, 2023
0

The first hearing in Genesis Capital's bankruptcy case will be held on January 23, according to court filings

Terra lending protocol Mars to launch mainnet

by Jon Hartney
January 22, 2023
0

The Mars Hub will launch an independent Cosmos application chain and issue MARS to users who hold the token during...

Central African Republic eyes legal framework for crypto adoption

by Jon Hartney
January 22, 2023
0

A 15-member committee is tasked with working on a legal framework that will allow cryptocurrencies to operate in

Load More
  • Trending
  • Comments
  • Latest

Ethereum Classic gets ‘endorsement’ from Vitalik Buterin, but ETC price still risks 50% crash

July 27, 2022

Critique on Helium’s $6.5K monthly revenue causes a stir

July 28, 2022

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

July 7, 2022

Cardano Vasil hard fork hit with another delay for several weeks

July 29, 2022

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

0

Crypto owners banned from working on US Government crypto policies

0

Korean startup Uprise lost $20M shorting LUNC

0

Ethereum testnet Merge mostly successful — ‘Hiccups will not delay the Merge.’

0

Bitcoin derivatives data shows room for BTC price to move higher this week

January 23, 2023

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

January 22, 2023

Genesis bankruptcy case scheduled for first hearing

January 22, 2023

Terra lending protocol Mars to launch mainnet

January 22, 2023

XBT.Market

This website is an automated news feed powered by the Nebulome cloud system. The site is made possible by YYC TECH Consulting and Alberta Digital Mining Company. As a team with major crypto and bitcoin enthusiasm, we have curated major sources of news, trading and financial data to bring you, our viewer, an unbiased source of truth.

Recent Posts

  • Bitcoin derivatives data shows room for BTC price to move higher this week January 23, 2023
  • Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher January 22, 2023
  • Genesis bankruptcy case scheduled for first hearing January 22, 2023
  • Terra lending protocol Mars to launch mainnet January 22, 2023
  • Central African Republic eyes legal framework for crypto adoption January 22, 2023

News Categories

  • Bitcoin
  • Blockchain
  • Business
  • Market

Tags

bitcoinMagzine Cointelegraph Cryptocurrency insidebitcoins Investment Mining Bitcoin NewsBTC

Quicklinks

  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market - Powered by YYC Tech Consulting & ADMCO.

No Result
View All Result
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market by Nebulome.

  • bitcoinBitcoin(BTC)$22,925.00-1.63%
  • ethereumEthereum(ETH)$1,648.61-2.07%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.00-0.07%
  • binancecoinBNB(BNB)$326.56-1.80%
  • usd-coinUSD Coin(USDC)$1.00-0.06%
  • rippleXRP(XRP)$0.397449-1.06%
  • Binance USDBinance USD(BUSD)$1.00-0.04%
  • cardanoCardano(ADA)$0.391825-1.93%
  • dogecoinDogecoin(DOGE)$0.090045-3.07%
  • matic-networkPolygon(MATIC)$1.280.71%
  • OKBOKB(OKB)$44.80-2.24%
  • SolanaSolana(SOL)$23.03-3.94%
  • Lido Staked EtherLido Staked Ether(STETH)$1,645.34-2.06%
  • polkadotPolkadot(DOT)$6.77-2.97%
  • Shiba InuShiba Inu(SHIB)$0.000014-6.02%
  • litecoinLitecoin(LTC)$98.68-2.47%
  • AvalancheAvalanche(AVAX)$20.03-3.80%
  • tronTRON(TRX)$0.0668881.17%
  • UniswapUniswap(UNI)$6.79-3.13%
  • daiDai(DAI)$1.00-0.07%
  • cosmosCosmos Hub(ATOM)$15.130.07%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$22,929.00-1.41%
  • chainlinkChainlink(LINK)$7.22-0.09%
  • ToncoinToncoin(TON)$2.29-3.53%
  • ethereum-classicEthereum Classic(ETC)$22.60-2.48%
  • leo-tokenLEO Token(LEO)$3.36-0.45%
  • moneroMonero(XMR)$167.53-0.26%
  • bitcoin-cashBitcoin Cash(BCH)$131.38-3.13%
  • Aerarium FiAerarium Fi(AERA)$7.14-13.09%
  • AptosAptos(APT)$14.71-9.37%
  • stellarStellar(XLM)$0.090725-1.69%
  • Lido DAOLido DAO(LDO)$2.837.70%
  • NEAR ProtocolNEAR Protocol(NEAR)$2.604.56%
  • CronosCronos(CRO)$0.083405-0.64%
  • ApeCoinApeCoin(APE)$5.72-5.44%
  • filecoinFilecoin(FIL)$5.40-3.34%
  • algorandAlgorand(ALGO)$0.2835040.65%
  • QuantQuant(QNT)$139.07-2.01%
  • HederaHedera(HBAR)$0.0743150.03%
  • vechainVeChain(VET)$0.025688-3.70%
  • Internet ComputerInternet Computer(ICP)$5.68-3.37%
  • The GraphThe Graph(GRT)$0.180366-10.59%
  • The SandboxThe Sandbox(SAND)$0.84-7.28%
  • FantomFantom(FTM)$0.52-12.68%
  • decentralandDecentraland(MANA)$0.75-6.14%
  • Axie InfinityAxie Infinity(AXS)$11.951.25%
  • AaveAave(AAVE)$86.41-2.66%
  • eosEOS(EOS)$1.08-3.42%
  • FlowFlow(FLOW)$1.12-7.23%
  • MultiversXMultiversX(EGLD)$46.03-4.45%
  • theta-tokenTheta Network(THETA)$1.14-4.93%
  • tezosTezos(XTZ)$1.22-1.34%
  • Terra Luna ClassicTerra Luna Classic(LUNC)$0.000180-2.76%
  • FraxFrax(FRAX)$1.00-0.27%
  • Frax ShareFrax Share(FXS)$13.788.72%
  • paxos-standardPax Dollar(USDP)$0.99-0.82%
  • true-usdTrueUSD(TUSD)$1.00-0.11%
  • Rocket PoolRocket Pool(RPL)$47.6212.15%
  • huobi-tokenHuobi(HT)$5.33-6.27%
  • Curve DAOCurve DAO(CRV)$1.141.76%
  • kucoin-sharesKuCoin(KCS)$8.64-1.43%
  • havvenSynthetix Network(SNX)$2.67-9.72%
  • ChilizChiliz(CHZ)$0.154620-6.33%
  • bitcoin-cash-svBitcoin SV(BSV)$42.68-2.15%
  • ImmutableXImmutableX(IMX)$1.02-11.12%
  • PancakeSwapPancakeSwap(CAKE)$4.631.25%
  • eCasheCash(XEC)$0.000037-2.62%
  • USDDUSDD(USDD)$0.99-0.33%
  • BitTorrentBitTorrent(BTT)$0.000001-1.34%
  • dashDash(DASH)$63.65-4.18%
  • makerMaker(MKR)$776.92-3.99%
  • Mina ProtocolMina Protocol(MINA)$0.83-5.82%
  • BitDAOBitDAO(BIT)$0.59-1.56%
  • iotaIOTA(MIOTA)$0.245398-3.27%
  • KlaytnKlaytn(KLAY)$0.209482-3.89%
  • GateGate(GT)$4.43-0.84%
  • Trust WalletTrust Wallet(TWT)$1.54-4.41%
  • neoNEO(NEO)$9.12-1.12%
  • ArweaveArweave(AR)$11.79-9.53%
  • OKCOKC(OKT)$33.472.98%
  • OptimismOptimism(OP)$2.76-11.55%
  • OsmosisOsmosis(OSMO)$1.110.42%
  • zcashZcash(ZEC)$44.98-4.34%
  • singularitynetSingularityNET(AGIX)$0.467354-27.16%
  • cUSDCcUSDC(CUSDC)$0.0227490.01%
  • gemini-dollarGemini Dollar(GUSD)$1.000.00%
  • THORChainTHORChain(RUNE)$1.88-4.25%
  • GMXGMX(GMX)$66.32-7.00%
  • cDAIcDAI(CDAI)$0.022155-0.03%
  • Tokenize XchangeTokenize Xchange(TKX)$6.79-0.51%
  • Baby Doge CoinBaby Doge Coin(BABYDOGE)$0.0000000.34%
  • RenderRender(RNDR)$1.72-18.16%
  • RadixRadix(XRD)$0.050242-0.45%
  • PAX GoldPAX Gold(PAXG)$1,866.400.20%
  • Fetch.aiFetch.ai(FET)$0.481064-17.23%
  • enjincoinEnjin Coin(ENJ)$0.50-4.48%
  • zilliqaZilliqa(ZIL)$0.030392-2.13%
  • Convex FinanceConvex Finance(CVX)$6.33-5.14%
  • cETHcETH(CETH)$33.20-1.81%