The Vermont Department of Financial Regulation’s filing alleges the beleaguered crypto lender was effectively insolvent as early as 2019, misled investors about the state of its finances, and “probably” used the assets of existing investors to pay yields to new investors. (The Logic)

Talking point: The findings about Celsius Network’s financial health at various points in time contrast with the New Jersey-based company’s rosy public statements about its reserves, lack of losses and the safety of customer funds—statements the regulator called “false and misleading.” The collapse of Celsius contributed to a broader crash in the value of the global crypto market this summer. Last month, the Caisse de dépôt et placement du Québec revealed it had written off the entire value of its US$150-million investment in the firm. At least 40 state regulators are investigating Celsius for potential mismanagement, securities fraud and market manipulation, according to the filing.