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Department of Financial Regulation States Celsius Is Insolvent

Published 07/13/2022, 04:41 AM
Updated 07/13/2022, 05:00 AM
Department of Financial Regulation States Celsius Is Insolvent

  • The Department of Financial Regulation warns users against Celsius.
  • DFR states that Celsius is deeply insolvent.
  • Celsius lacks the assets to honor its obligations.

The Department of Financial Regulation issued a consumer alert against Celsius, stating that it is deeply insolvent. DFR mentioned in its release that the crypto lender Celsius Network’s actions are affecting thousands of customers.

The DFR also stressed that the lender lacks the resources and liquidity to fulfill its commitments to account holders and other creditors.

Beginning in June, Celsius stopped withdrawals, made employment cuts, and recruited restructuring consultants to offer advice on its financial predicament.

The lender said earlier on Tuesday that it had fully repaid its debt on the decentralized finance (DeFi) network. As a result, $26 million in collateral was released as a part of its restructuring strategy. It also sent $418 million in “stETH,” ...

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