State watchdogs have questioned Celsius about alleged financial mismanagements.
Recent events saw Washington’s Assistant Attorney general Stephen Manning file a motion to Judge Martin Glenn on September 22nd, asking him to represent Washington State Department of Financial Institutions.
According to the filing,
“I certify that my membership in good standing in the Washington bar and, if applicable the bar of U.S. District Court Western District Washington and U.S Court of Appeals for Ninth Circuit is valid.”
It first stopped customer withdrawals in June. The company blamed “extreme market conditions” and laid off 150 workers. Soon after, the firm hired restructuring consultants from Alvarez & Marsal to “preserve assets.” In the following month, it filed Chapter 11 bankruptcy protection. Further proceedings in the Southern District of New York revealed the extent of its financial problems. Celsius reportedly owes 500,000 creditors approximately $5 billion.Since then, state securities regulators from Texas, Vermont, Wisconsin, and now Washington have pushed for greater transparency.Vermont’s Department of Financial Regulation (DFR), for one, leveled serious allegations against the troubled crypto lender. The DFR claimed that Celsius was insolvent since 2019. However, it later stated that the platform wasn’t profitable enough to pay the promised yields.
CryptoPotato’s first article, Washington State Hops on Celsius Network’s Bankruptcy Case, appeared first on CryptoPotato.
Marla Brooks – Financial Analysis
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