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Vermont Regulators to Celsius Customers: ‘Proceed With Caution’

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The Vermont Department of Financial Regulation has encouraged investors to "proceed with caution" when it comes to Celsius as it is believed to be deeply insolvent and don’t have the assets or liquidity to honor its obligations.

“Due to its failure to register its interest accounts as securities, Celsius customers did not receive critical disclosures about its financial condition, investing activities, risk factors, and ability to repay its obligations to depositors and other creditors,” the Vermont DFT noted in a consumer alert.

In June, Celsius hit the pause button on withdrawals, citing the extreme market conditions within crypto.

Celsius has since hired restructuring lawyers and reports of job cuts circulated in recent weeks. This all comes after Goldman Sachs is leading an investor group to purchase the distressed Celsius assets.

Full Video Transcript:

The Vermont Department of Financial Regulation has encouraged investors to "proceed with caution" when it comes to Celsius as they are believed to be deeply insolvent and don’t have the assets or liquidity to honor its obligations.

The DFR notes that the Celsius has been able to operate without regulatory oversight, meaning that customers did not receive critical disclosures about its financial condition. Last month, Celsius hit the pause button on withdrawals, citing the extreme market conditions within crypto.

Since then Celsius has hired restructuring lawyers and reports circulated last week that the company had cut around 150 jobs. This all comes after Goldman Sachs is leading an investor group to purchase the distressed Celsius assets. Do you think there is any value here?

It's your boy Ross Mac and that was the Crypto Minute on TheStreet. 

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