Celsius Network is "deeply insolvent", Vermont's Department of Financial Regulation (DFR) said on Tuesday, adding that the cryptocurrency lender is also not honouring its obligations to customers and creditors as it does not have the assets and liquidity to do so.
The DFR also said that Celsius has been involved in an unregistered securities offering, selling cryptocurrency interest accounts to retail investors including investors in Vermont and the crypto lender also lacks a money transmitter license.
Celsius, until recently was operating largely without regulatory oversight.
The regulator said, "due to its failure to register its interest accounts as securities, Celsius customers did not receive critical disclosures about its financial condition, investing activities, risk factors, and ability to repay its obligations to depositors and other creditors."
Furthermore, the multistate investigation of Celsius has been joined by the state agency. While, the company's decision to...
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