{"id":248106,"date":"2022-07-13T19:00:12","date_gmt":"2022-07-13T18:00:12","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=248106"},"modified":"2022-07-13T19:03:55","modified_gmt":"2022-07-13T18:03:55","slug":"vermont-joins-multistate-investigation-into-celsius","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/vermont-joins-multistate-investigation-into-celsius\/","title":{"rendered":"Vermont joins multistate investigation into Celsius"},"content":{"rendered":"<p>Vermont has opened <a href=\"https:\/\/dfr.vermont.gov\/consumer-alert\/dfr-encourages-celsius-network-investors-proceed-caution\">investigations<\/a> into Celsius Network while warning residents to be wary of investing in more <a href=\"https:\/\/cryptoslate.com\/coins\/celsius\/\">CEL<\/a> tokens.<\/p>\n<p>Vermont's Department of Financial Regulation (DFR) said Celsius is &#8220;deeply insolvent&#8221; and accused it of mismanaging its customers' funds.<\/p>\n<blockquote><p>&#8220;Celsius is deeply insolvent and lacks the assets and liquidity to honor its obligations to account holders and other creditors.&#8221;<\/p><\/blockquote>\n<p>According to the statement, the financial regulator believes Celsius engaged in &#8220;offering unregistered securities&#8221; and lacked a &#8220;money transmitter license.&#8221; This means the firm had operated in the state without any regulatory oversight.<\/p>\n<p>The financial regulator revealed that it had joined a multistate investigation of Celsius.<\/p>\n<h2>Other US states are investigating Voyager and Celsius<\/h2>\n<p>Bloomberg <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-07-08\/voyager-celsius-implosions-spur-expanded-texas-alabama-probes?srnd=cryptocurrencies-v2\">reported<\/a> that regulators in Texas and Alabama are investigating the operations of Celsius and Voyager Digital.<\/p>\n<p>According to Bloomberg, the state authorities are looking into the two firms' operations to see if they met disclosure requirements and whether their product offerings qualify as securities.<\/p>\n<p>Joe Rotunda, the director of enforcement at the Texas State Securities Board, said:<\/p>\n<blockquote><p>&#8220;What we're seeing now is that a lot of these crypto-lending firms may not have fully disclosed what they were doing on the backside with investors' money.&#8221;<\/p><\/blockquote>\n<p>The chief deputy director at the Alabama Securities Commission, Amanda Senn, also backed this up, saying:<\/p>\n<blockquote><p>&#8220;We are investigating these companies and trying to figure out what happened and why. We are making inquiries. It's still the initial stages, but we have a responsibility on behalf of our investors in our states.&#8221;<\/p><\/blockquote>\n<p>Celsius showed the first signs of trouble after it laid off some staff and froze customers' withdrawals. Since then, other crypto firms like Voyager, CoinFlex, and others have <a href=\"https:\/\/cryptoslate.com\/embattled-exchange-coinflex-sues-roger-ver-in-84-million-lawsuit\/\">frozen withdrawals<\/a>.<\/p>\n<p>Meanwhile, Voyager has <a href=\"https:\/\/cryptoslate.com\/voyager-digital-gives-update-on-recovery-plan-reinstating-user-account-access\/\">filed<\/a> for Chapter 11 bankruptcy. It revealed that it has almost $1.3 billion in outstanding debts owed by Alameda Research and Three Arrows Capital.<\/p>\n<h2>Celsius is repaying its debts<\/h2>\n<p>Celsius <a href=\"https:\/\/cryptoslate.com\/celsius-network-continues-to-make-moves-prompting-calls-to-resume-withdrawals\/\"><span class=\"s4\">has paid some of its debts<\/span><\/a> to DeFi protocols. It recently paid off its debts to Aave and got back \u00a0$410 million in staked Ethereum collateral. It still owes Aave about $8.5 million.<\/p>\n<p>This is similar to the move it made last week when it paid off all its $228 million debts to Maker Protocol and freed up $440 million worth of wrapped Bitcoin (<a href=\"https:\/\/cryptoslate.com\/coins\/wrapped-bitcoin\/\">wBTC<\/a>) pledged as collateral.<\/p>\n<p>But it still owes Compound about $50 million in <a href=\"https:\/\/cryptoslate.com\/coins\/usd-coin\/\">USDC<\/a> and has $227 million worth of collateral locked in Aave and Compound.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vermont has opened investigations into Celsius Network while warning residents to be wary of investing in more CEL tokens. Vermont&#8217;s Department of Financial Regulation (DFR) said Celsius is &#8220;deeply insolvent&#8221; and accused it of mismanaging its customers&#8217; funds. &#8220;Celsius is deeply insolvent and lacks the assets and liquidity to honor its obligations to account holders [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":248181,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76799,60793,60035],"tags":[75593,77847,77893,77895,77894],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Vermont joins multistate investigation into Celsius<\/title>\n<meta name=\"description\" content=\"Vermont financial regulator has released a statement that said the Celsius was not licensed to operate in the state.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/vermont-joins-multistate-investigation-into-celsius\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vermont joins multistate investigation into Celsius\" \/>\n<meta property=\"og:description\" content=\"Vermont financial regulator has released a statement that said the Celsius was not licensed to operate in the state.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/vermont-joins-multistate-investigation-into-celsius\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-13T18:00:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-13T18:03:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/07\/celsius-investigation.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"987\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/vermont-joins-multistate-investigation-into-celsius\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/vermont-joins-multistate-investigation-into-celsius\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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