Youtuber Ben Armstrong, aka Bitboy, is filing a class-action lawsuit against Celsius and its CEO, Alex Mashinsky. Ben runs a YouTube channel that goes by the name Bitboy, with over 1.45 million subscribers.
The prominent crypto staking and lending platform Celsius is witnessing a downfall, with speculation piling up one over the other. The Celsius network had a particularly turbulent weekend. The platform was chastised for its poor financial management. In May, the crypto-staking network reportedly had 1.7 million users and $12 billion in customer holdings.
In the midst of it all, Celsius wrote a blog post announcing the suspension of withdrawals, swaps, and transfers. The platform said that “extreme market conditions” prompted it to do so in a lengthy blog post. The blog post states that the steps have been taken to stabilize the liquidity and operations of Celsius.
It is important to note that Celsius has completely halted swaps, withdrawals, and trading for three days straight. The platform that promised users that they could withdraw their crypto anytime has held it under their custody for three days. Read here to know more about the rise and fall of Celsius.
Celsius to face further trouble with Bitboy’s lawsuit
Ben Armstrong tweeted that he would begin the process of a class-action lawsuit against Celsius and Alex. To add to the already facing battles, now Celsius might have to face further troubles in the court. Ben claims that he is one of the affected and will deliver more details about the lawsuit in the coming days.
Armstrong wrote that the firm has enough funds to pay off its debts ($1.2B to AVVE and $2.5 $stETH collateral).
“Imagine an insolvent company that you can’t withdraw your money from ASKING YOU TO SEND THEM MORE MONEY. Literally defies logic. So you may be asking yourself the question, “why would they not let you pay off the loan with money/crypto/stables that are already in your account?”
Bitboy said that Celsius and Alex are scamming people and are asking him to send more money to pay off the loan.
Armstrong claims that the company is already insolvent and is heading into bankruptcy. He is quite confident about the lawsuit, and further details about the lawsuit will be available soon, as he wrote in his tweet.
“This is a PURE SCAM to try to bring in fresh money from users to pay off loans. You see, once Ethereum hits a certain number, we get liquidated and lose all of our collateral against the loan. So they are trying to take advantage of fear in the market to pad their pockets.”