Vermont Regulator Says Celsius Network is Extremely Insolvent

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Crypto lending platform Celsius Network is “extremely insolvent” as it lacks liquidity to meet its obligations, according to the Vermont Department of Financial Regulation (DFR).

The post reads:

“Celsius has used client funds for a variety of risky and illiquid investments, trading and lending. In addition, some of the assets owned by Celsius are illiquid.”

According to the regulator, user funds acted as collateral for additional loans “in order to implement investment strategies.” According to the DFR, the company’s assets are not enough to cover outstanding liabilities.

The agency has added the platform operates in many jurisdictions, including Vermont.