The circumstances surrounding the failure of the cryptocurrency lender Celsius continue to take wrong twists, with the company declaring bankruptcy, a former manager being blamed for the loss of a number of millions of dollars, and the latest report indicating that the company concealed its financial troubles from its investors.
The Vermont Department of Financial Regulation filed the document in support of the United States Trustee’s application to appoint an independent examiner. The trustee overseeing Celsius’s bankruptcy case has said in the past that they are seeking an examiner to help in acquiring fresh information and reducing “confusion and worry.”
According to the most recent filing, Celsius faced “huge losses” in the first seven months of 2021 and “two substantial adverse occurrences” in June and July of that year, based on an initial review of financial documents. Moreover, despite being required by state and federal securities laws to publish its financial statements, the business concealed its losses from investors. According to the petition, the firm “never generated sufficient income to maintain the investor returns.”
According to the most recent filing on the insolvent lender: During the course of the multistate investigation, it became apparent that Celsius, via CEO Alex Mashinsky and others, made false and misleading statements to investors about, among other things, the company’s financial health and compliance with securities laws, according to the complaint.
It proceeded: Despite worries about the volatility of the cryptocurrency market, both of these factors likely influenced ordinary investors to buy in Celsius or to withdraw their holdings.
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