Celsius operated a different business model as advertised to the customer.
Mis-sold business model; Image: PYMNTS
An ordered U.S. court audit report shows that the crypto platform Celsius followed a different business model than it advertised. Customer deposits were used to buy stablecoins. The deficit on its balance sheet grew to more than $1.19 billion between May 2021 and bankruptcy.
Last July, the company filed for bankruptcy to protect creditors after stopping customer withdrawals.
Crypto lenders like Celsius experienced a boom during the pandemic, luring depositors with high interest rates to loans rarely offered by traditional banks.
