Crypto lender Celsius propped up its token, benefiting insiders - U.S. bankruptcy examiner

Celsius Network logo and representations of cryptocurrencies are seen in this illustration taken, June 13, 2022. REUTERS/Dado Ruvic/Illustration

SINGAPORE/LONDON (Reuters) -Bankrupt crypto lender Celsius Network used investor money and customer deposits to prop up its own token, inflating its balance sheet while two of its founders cashed out millions, a U.S. court-ordered examiner report released on Tuesday showed.

Crypto lenders such as Celsius boomed during the COVID-19 pandemic, drawing depositors with high interest rates and easy access to loans. New Jersey-based Celsius filed for U.S. bankruptcy in July last year, after freezing customer withdrawals from its platform.