Vermont regulator joins ‘multistate investigation’ into Celsius

Quick Take

  • The state’s department of financial regulation is looking whether Celsius disclose financial activities to investors 

The Vermont Department of Financial Regulation has joined a “multistate investigation” into troubled crypto lender Celsius, according to a Tuesday statement. 

The regulator found Celsius of not disclosing critical information, namely the platform's financial condition, investing activities, risk factors and ability to repay its obligations to depositors and other creditors, according to a consumer alert posted today. 

“Previous representations made by the Company, its CEO, and other Celsius representatives about the safety of customer funds and the company’s ability to meet withdrawal obligations are untrue,” said the notice. 

The department also said that Celsius has been engaged in an “unregistered securities offering” by offering cryptocurrency interest accounts to retail investors. It also found Celsius lacking of money transmitter license, making them “operating largely without regulatory oversight.” 


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Earlier today, California Department of Financial Protection and Innovation issued a consumer alert that encourages customers of “crypto-interest account providers that have slowed or paused withdrawals or transfers of crypto assets” to contact the regulator. The alert did not name any firms as part of the investigation, but Celsius has yet to restart withdrawals and transactions since pausing services last month. 

Reports indicated regulators in Texas and Alabama were expanding investigations into Celsius and another troubled crypto lender Voyager following reports that firms may not have adequately disclosed financial condition to investors. 

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.