Cryptocurrency lending company Celcius Network, which went bankrupt last month, continues to grapple with problems.
With the return of the crypto money market that broke out with the collapse of Terra, many companies came to the brink of bankruptcy or did. In this period, the bankruptcy statement came from Celsius, which first stopped its withdrawals. Although Celcius is bankrupt, he is not yet out of trouble.
Celsius Fooled Crypto Investors
The Ministry of Financial Protection and Innovation (DFPI) has issued an order against Celsius Network and its CEO, Alex Mashinsky. According to DFPI, Celsius Network and its CEO misrepresented promises to crypto investors and abused customers’ trust. Specifically, it deceived investors about the risk of investing digital assets.
DFPI discovered that Celsius provides accounts that allow users to earn interest after depositing their digital assets on the platform. However, he revealed that he did not designate these accounts as securities under California law.
Celsius, which managed $28 billion worth of assets a few months ago, has lost more than 80 percent of those assets, and the company also has investors who owe $4.7 billion.
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