In the next round of insolvency proceedings relating to the bankrupt lending service Celsius: the financial regulator in Vermont is now accusing the company of having embellished its balance sheets by manipulating its own CEL token. That comes from one document to the bankruptcy court.
It is said that Celsius caused a price increase by buying its own CEL token in the millions and thereby artificially inflated the balance sheets. Without those purchases, Celsius would have effectively been insolvent as early as 2019, according to the regulator.
Supposedly, company insiders also benefited from these methods. The regulator also suspects that over the past three years, Celsius has used money from new investors to pay old investors, effectively running a Ponzi scheme.