Court documents reveal: Celsius has been insolvent since 2019

According to ChainCatcher news and a report by Decrypt, Vermont Assistant Attorney General Ethan McLaughlin has requested broader authority from the U.S. Bankruptcy Court for the Southern District of New York to investigate Celsius. Court documents submitted by McLaughlin indicate that Celsius is suspected of artificially inflating the price of its CEL Token, increasing its net position in CEL by hundreds of millions of dollars, thereby exaggerating the company's holdings of CEL Tokens on its balance sheet and financial statements.

McLaughlin stated, "Since at least February 28, 2019, Celsius's liabilities have exceeded its assets, and these practices may have enriched Celsius insiders at the expense of retail investors." Celsius lacks sufficient assets to repay its debts, especially after incurring approximately $454 million in unrealized losses between May 2 and May 22, 2022.

Court documents reveal that regulatory agencies from over 40 states, including Vermont, have launched investigations into Celsius. (Decrypt)