US regulators say multibillion-dollar cryptocurrency lender Celsius operated like a ponzi scheme

In June, a multi-billion dollar cryptocurrency lender named Celsius went bankrupt, with its court filings showing a $1.2 billion black hole in its finances. Celsius was a cryptocurrency trading and lending company that at one point had over $5 billion in “assets”. It was only founded in 2017, but quickly attracted cryptocurrency traders and speculators: you could deposit cryptocurrencies on Celsius with the promise of high returns or get a cash loan secured against your cryptocurrency holdings.

Then it spectacularly crashed and burned with more than a billion in debt. Almost unbelievably the company tried to put a positive spin on the news – but since the biggest losers were to be “regular” investors, the collapse has attracted the attention of both the US Department of Justice and Vermont regulators, who have begun to they turn over rocks to investigate what happened.

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