State of Vermont alleges Celsius is a fraudulent ponzi operation, and Celsius was in losses in 2021 itself. 40 states are investigating Celsius

The latest joinder just entered in the Celsius bankruptcy filing by Vermont state's Department of Financial Regulation alleges severe irregularities and fraud at Celsius.

Apparently, 40 states are investigating Celsius for fraud and illegal securities offerings. They accuse Mashinsky of lying to investors in AMAs.

Celsius bankruptcy started in 2020 and 2021, and not in 2022 Summer, as Celsius have been claiming.

During the course of the multistate investigation, it has become clear that Celsius, through its CEO Alex Mashinsky and otherwise, made false and misleading claims to investors about, inter alia, the company’s financial health and its compliance with securities laws, both of which likely induced retail investors to invest in Celsius or to leave their investments in Celsius despite concerns about the volatility of the cryptocurrency market.

In fact, preliminary analysis of financial records provided to the multistate regulators group indicates that Celsius experienced massive losses in the first seven months of 2021. It also experienced two material adverse events in June and July of 2021

During the 341 meeting, Celsius admitted, through its CFO Chris Ferraro, that the company’s insolvency started with financial losses in 2020 and through 2021, belying the claims in Celsius’s “First Day” declarations that the company’s insolvency stemmed from the fall of the crypto market during Spring 2022 and the related “run on the bank,” and further demonstrating the falsity of Celsius’s representations to investors

Apparently Celsius itself admitted its earnings were not enough to cover the yields being paid out, thus old investors were being paid with funds funnelled from new investors i.e. a ponzi scheme

Celsius also admitted at the 341 meeting that the company had never earned enough revenue to support the yields being paid to investors. This shows a high level of financial mismanagement and also suggests that at least at some points in time, yields to existing investors were probably being paid with the assets of new investors.

State regulators say there are credible claims that Celsius manipuolated the price of CEL token:

Credible claims have been asserted publicly, through letters to this Court and otherwise, that Celsius and its management engaged in the improper manipulation of the price of the CEL token

Full filing if anyone wants to go through: https://cases.stretto.com/public/x191/11749/PLEADINGS/1174909072280000000015.pdf