Embattled crypto lender Celsius is a 'fraud' and 'Ponzi scheme,' lawsuit alleges
— Fraud, Scheme, Interest, Stone, Lawsuit, Claims, Crypto, Embattled, Celsius, Price — 1 min read
Celsius on Thursday was sued by former investment manager Jason Stone, as pressure continues to mount on the firm amid a crash in cryptocurrency prices. Celsius acts like a bank in that it offers customers yield, sometimes as high as nearly 19%, if they deposit their crypto with the company. Celsius then lends that crypto out to others willing to pay a high interest rate to borrow. Then it tries to pocket that money in order to give the yield back to customers. Celsius was not immediately available for comment on the lawsuit when contacted by CNBC. The lawsuit comes after Celsius, which offers customers interest for depositing their crypto, was forced to pause withdrawals for its users as it faces a liquidity crisis. Celsius is accused of running a "Ponzi scheme" Source