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
The Washington State Department of Financial Institutions is the new interested party to join Celsius’s bankruptcy case.
Assistant State Attorney General Stephen Manning asked Judge Martin Glenn, who oversaw the case, to admit him on behalf of Washington’s financial regulator, and was approved.
Securities regulators in Washington, Alabama, Kentucky, New Jersey and Texas have launched an investigation into Celsius after the company suspended customer payments in June.
When Vermont’s Department of Financial Regulation suggested in September that the company’s structure resembled a Ponzi scheme, Celsius had this to say about Celsius:
“This shows a high level of financial mismanagement, and it also shows that, at least at some point, returns to existing investors are probably paid by the assets of new investors.”
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