American porn actress Stormy is currently at the centre of controversy surrounding president Donald Trump.
She had been booked to appear on the show but pulled out hours before the show went on air.
During last night's Bit On The Side, Big Brother played Stormy's VT that she had recorded for launch night.
Host Rylan Clark-Neal also revealed the truth behind her exit.
His statement followed a lot of speculation throughout Friday after Stormy's failed appearance during Thursday night's launch.
Big Brother tweeted: "Stormy Daniels was booked to appear on the show several months ago and hours before the show was due to go live, informed the production team that she no longer wished to enter the house as previously agreed.
"Producers discussed a variety of options with her but were unable to agree any acceptable conditions for her entering the house. Our focus is now on making a brilliant series with our fantastic celebrities."
Appearing on Bit On The Side, Rylan said: "Big Brother was thrilled and excited for Storm's potential for the house.
"But 5 hours before the live shows, Stormy informed us she wished to simply appear on launch night and leave. Big Brother tried to work out a fair comprise with her but for Big Brother, launch night is about moving into the house and not celebrities moving out."
According to The Sun newspaper, Stormy was said to be offered £750,000 to appear on the show.
Rylan denied claims that Stormy had asked for more money and also denied the suggestion that Big Brother had sort to "control" her.
"We had her, she changed her mind and she went.
"It wasn't how we wanted it go but always remember no housemate is bigger than Big Brother," Rylan added.
Celebrity Big Brother continues nightly at 9PM on Channel 5.