The very next paragraph goes into specific details wrt/ how Celsius allegedly lied to their clients.
"The agency said Celsius engaged in "risky trading practices" and made uncollateralized loans, despite telling investors that it did not. The company also falsely claimed to have raised $50 million from selling its token, and claimed to have 1 million active users when in fact it had only around 500,000 depositors, many of whom were no longer active, the SEC said."
Securities or not, selling something while knowingly lying to buyers about what it is they are purchasing is fraud.
"The agency said Celsius engaged in "risky trading practices" and made uncollateralized loans, despite telling investors that it did not. The company also falsely claimed to have raised $50 million from selling its token, and claimed to have 1 million active users when in fact it had only around 500,000 depositors, many of whom were no longer active, the SEC said."
Securities or not, selling something while knowingly lying to buyers about what it is they are purchasing is fraud.