Regulator says bankrupt crypto lender Celsius misled investors
The Vermont watchdog says that Celsius kept its "massive losses" in the first half of last year from investors, despite laws requiring it to disclose financial statements.The filing cites blogs and tweets from Celsius CEO Alex Mashinsky, including one insisting that "all funds are safe" when in fact, says the filing, "the company was insolvent and depositor funds were not safe".The document also notes a recent creditor meeting in which the company admitted it had never earned enough revenue to support the yields being paid to investors. "This shows a high level of financial mismanagement and also suggests that at least at some points in time, yields to existing investors were probably being paid with the assets of new investors," says the filing.
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