A new interested party joins the bankruptcy case of crypto lending company Celsius Network.
Celsius’s status remains uncertain. Amid the market crisis, Celsius announced on June 12 that it was suspending withdrawals. The company subsequently filed for Chapter 11 bankruptcy on July 13. Celsius, which has a $1.2 billion deficit in its budget, was accused by the Vermont regulator of misleading investors in recent months. Another update came to the agenda regarding the lawsuit filed with the claim that it resembled a Ponzi scheme.
Washington State Joins Celsius Bankruptcy Case as Related Party
Washington State Department of Financial Institutionsbecame the new interested party to join Celsius’ bankruptcy case.
State Deputy Attorney General Stephen Manning, the judge supervising the case Martin GlennHe asked to accept him on behalf of Washington’s financial regulator, and he got approval.
Securities regulators in Washington, Alabama, Kentucky, New Jersey and Texas have launched an investigation into Celsius after the company suspended customer payments in June.
Vermont Department of Financial Regulation, when he suggested in September that the company’s structure resembled a Ponzi scheme, he said of Celsius:
“This demonstrates a high level of financial mismanagement and also indicates that, at least at some points, returns to existing investors are likely to be paid by the assets of new investors.”
