Crypto Lender Celsius Misled Investors, Vermont Regulator Says

Celsius Network, the bankrupt cryptocurrency lender, may have hidden its financial trouble from its investors and "engaged in the improper manipulation of the price" of the platform's tokens to boost the company's balance sheet and financials, according to a new court filing. From a report: The Vermont Department of Financial Regulation submitted the filing on Wednesday in support of the United States Trustee's motion to appoint an independent examiner. The trustee handling Celsius's bankruptcy case previously said that it is seeking an examiner to help get additional information and clear up "confusion and anxiety."

The latest filing shows that, based on a preliminary analysis of financial records, Celsius posted "massive losses" in the first seven months of 2021 and experienced "two material adverse events" in June and July of that year. And that the company had kept its losses from investors, despite state and federal securities laws requirements to disclose its financial statements. Moreover, the filing also alleged that Celsius may have manipulated the price of its CEL token. The move may have "artificially" inflated the company's CEL holdings on its balance sheet. The company "never earned enough revenue to support the yields being paid to investors," the filing said.

Oh No!

[splutty]

Anyway...

The real value of celcius

[rossdee]

is minus 40

Re:

[greytree]

That's racist.

Re:

[arosenfield]

The same value as my new Fahrenheit tokens!

Shitcoin: Obfuscation, Pyramid Scheme; News at 11

[Urganite]

It amazes me how many people get duped by shitcoins. It amazes me even more that people consider it news.

Re:

[Black Parrot]

It amazes me even more that people consider it news.

Yeah. How come they never post positive news about crypto anymore?

There's a fool born every minute

[takionya]

When are they ever going to learn that this crypto is one gigantic pyramid forward selling scam.

Re:

[HiThere]

I think the claim here is not just that it's one gigantic pyramid forward selling scam, but rather that it's one gigantic pyramid forward selling scam that lies about what its worth to large investors.

Re:

[Ed Tice]

Big mistake. Should have just lived off of the profits of selling shitcoin to the vulnerable. Now that they've ripped off big investors who can afford the losses, the long arm of the law will throw the hammer down on them.

Re:

[takionya]

Insightfull !!!

Let's call it what it is

[Joce640k]

The company "never earned enough revenue to support the yields being paid to investors," the filing said.

ie. It's a Ponzi scheme.

https://en.wikipedia.org/wiki/... [wikipedia.org]

(just like all the others)

Dupey. Lump the crypto and NFT stories together

[greytree]

These idiots losing their money is great, but it is getting boring.

Rather than every new disaster, couldn't you just post a weekly digest of the funniest bits?

Re:

[splutty]

https://web3isgoinggreat.com/ [web3isgoinggreat.com] for your digests :)

Better story curation

[Petersko]

How about we start only featuring crypto stories that start with some form of, "Crypto entity X was upright, honest, and transparent today, and uneducated investors didn't get taken."

Re:

[Opportunist]

Yeah, I agree, we've had enough crypto stories by now, no more of them.

Re:

[Ed Tice]

Should you find such a thing, please submit a story. The crypto-bros would love it. Unfortunately they haven't had success in locating one. But maybe they are just too busy fleecing vulnerable people.