Crypto lending firm Celsius saw over 2,000% growth in deposits, but concerns surround where deposits go

Cryptocurrency lending firm Celsius Network has seen 2,165% growth in deposits since it opened its business last year, but there are concerns surrounding how interest is generated from these deposits
Celsius states that it lends to hedge funds, institutional traders, and exchanges to earn interest, however, the firm does not make clear that it also lends to margin traders through margin trading programs run by some exchanges
One of these exchanges is Bitfinex, which is entangled in a series of legal disputes recently; lending to margin traders on Bitfinex gives the exchange full control over risk management of the loans and may expose Celsius to regulatory and operational risk.

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By Celia Wan & Isabel Woodford – August 26th 2019

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