A bombshell new filing by the Vermont Department of Financial Regulation in the Chapter 11 proceedings of the collapsed Celsius Network makes the case that the crypto lender was effectively insolvent, not just after the crypto market declines of early 2022 but as early as 2019.
Celsius itself admitted to investigators “that the company had never earned enough revenue to support the yields being paid to investors.” The filing further claims that its financial analysis “suggests that at least at some points in time, yields to existing [Celsius] investors were probably being paid with the assets of new investors.”
Although the regulator never used the word, that’s the dictionary definition of a Ponzi scheme.
Source: Vermont Regulators Didn’t Use the Word, but I Will: Celsius Was a Ponzi