Vermont becomes the sixth US state to launch investigation against Celsius
The state financial regulator alleged that Celsius violated state security laws by offering high crypto interest rate accounts to customers and unethically using clients’ funds to invest in illiquid products. Vermont's Department of Financial Regulation (DFR) issued a warning against troubled crypto lending firm Celsius on Tuesday, reminding users that the crypto lending firm is not licensed to offer its services in the state.The DFR alleged that Celsius is “deeply insolvent” and doesn’t possess “assets and liquidity” to fulfill its obligations towards the customers. The state regulator....
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Bitcoin ATMs have been a growing market worldwide as Bitcoin slowly and consistently gains popularity, and many parts of the United States have joined the technology revolution. Some states in the union are more interested and accommodating than others. New Hampshire has been very pro-Bitcoin within their state's regulatory framework. It appears that their western next door neighbor, Vermont, is not so much. Vermont goes from Hero to Zero. At the heart of the matter is being licensed by the state of Vermont to operate a Bitcoin ATM. Blu-Bin/PYC has been running this Bitcoin ATM at a Church....
A key concern is that the firm hasn’t explicitly outlined what it will do with the stablecoin sale proceeds. State regulators from Texas and Vermont have filed a motion objecting to embattled crypto lender Celsius’ plans to sell off its stablecoin holdings. Separate motions from both regulators filed on Sept. 29 argue that there’s a risk the firm could use the capital to resume operating in violation of state laws. The filings come after a Sept. 15 notice from Celsius' legal team asking the United States Bankruptcy Court for the Southern District of New York for permission to sell its....
According to a court document from the Vermont Department of Financial Regulation, bankrupt cryptocurrency lender Celsius Network made “false and misleading claims” regarding its “financial health and compliance with securities laws”. Celsius Was Ran Like A Ponzi Scheme The Vermont Department of Financial Regulation said in a document supporting the Justice Department’s request to appoint […]
An unnamed source told CNBC that the company plans to file the bankruptcy paperwork "imminently." Crypto lending platform Celsius has reportedly filed for Chapter 11 bankruptcy, having notified individual U.S. state regulators on Wednesday, July 13.The news was reported by CNBC and referred to an unnamed source, who asked not to be named as the proceedings were private. The source noted that Celsius plans to file the paperwork “imminently.” The news comes just days after the lending platform replaced its previously hired law firm with Kirkland & Ellis LLP, the same firm that assisted....
As it look for ways to utilize new innovations for its own record keeping applications, the State of Vermont has asked experts to submit a report on the blockchain technology. The request, signed by the state governor himself, has directed the Secretary of State, the Commissioner of Financial Regulation, and an Attorney General to consult with the delegates of the National Conference of Commissioners on Uniform State Laws and the Center for Legal Innovation at Vermont Law School, while creating a report that elaborately discusses the risks and benefits associated with the blockchain....