Celsius Network, the troubled crypto lender, “is deeply insolvent,” alleged the U.S. state of Vermont’s Department of Financial Regulation (DFR), noting the lender lacks the assets and liquidity to honor its obligations to account holders and other creditors. “Celsius deployed customer assets in a variety of risky and illiquid investments, trading, and lending activities,” the DFR said in a statement. “Celsius compounded these risks by using customer assets as collateral for additional borrowing to pursue leveraged investment strategies,” the statement added. Celsius is one of the crypto lenders facing financial troubles in the latest liquidity crisis in crypto. It suspended withdrawals starting June 12, cut jobs and hired restructuring experts to advise on its financial situation. Earlier on Tuesday, the lender said that it fully paid off its debt on the decentralized finance (DeFi) protocol Aave, freeing up $26 million in tokens as part of its latest debt restructuring maneuver. It also moved $418 million in staked ether or “’stETH” to an unknown wallet.
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