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Ben Armstrong's intention to file a lawsuit against Celsius
Two weeks after his appearance in the "Ask Me Anything" (AMA) interview with Celsius founder Alex Mashinsky, cryptocurrency Youtuber Ben Armstrong announced that he intends to file a class action lawsuit against the lending platform and its ceo.
Armstrong made the legal threats via Twitter on June 15, while he also provided more details to confirm the allegations. Armstrong had trouble being unable to pay off loans with existing funds on the platform and instead had to make new deposits to repay the loans.
"The account holder said that our money in the account was enough for a loan. But we couldn't touch our money in the account. WE HAVE TO SEND CELSIUS MORE MONEY TO GET THE MONEY BACK WE OWN." "Imagine how ridiculous this is when a company that defaults doesn't allow you to withdraw money and ask you to send more money to them," he added.
Armstrong's preparations before counterattacking
preparation says he is currently in the process of working to collect all the contents of "leaks, internal documents, detailed information about loans, etc." while talking to lawyers to find out the best way to proceed with a class action lawsuit. The co-plaintiffs have yet to be added because Armstrong has not yet "officially begun to act."
BitBoy crypto is the second most subscribed Cryptocurrency YouTube account with around 1.45 million subscribers, and the content mainly revolves around providing coverage of market events/news. This channel is second only to Coin Bureau which has 2.07 million subscribers. While BitBoy Crypto has previously had a lot of detractors, some of them allege that he was paid to advertise suspicious crypto assets in the past.
Armstrong's affection for Celsius surged just two weeks ago, when he was featured in an interview "Ask Me Anything (AMA)" interview with Mashinsky on Celsius' YouTube channel.
"I never imagined the worst of this until I became one of the victims. Day by day, I constantly feel the pain, the hatred for myself rises in me," he said.
The future is on the brink of Celsius.
Celsius is in a battle with payments becoming impossible or facing complex liquidity problems due to the collapse of the cryptocurrency market. The company halted withdrawals on June 13 and is also believed to have transferred $320 million worth of assets to repay loans and avoid liquidation on decentralized financial (DeFi) platforms such as AAVE.
However, one problem that will arise if Celsius faces a lawsuit is that if Celsius files for bankruptcy, it will trigger a provision known as "auto-stay," which would prevent creditors from pursuing a collection operation against the company.
According to the report, Celsius has made efforts to find potential solutions to revive its finances by resorting to help from Akin Gump Strauss Hauer & Feld's restructuring lawyers, however Armstrong claims that these types of lawyers have expertise in preparing companies for bankruptcy.
"Even as Celsius stands on the verge of bankruptcy, we have found some potential settlements to still proceed with a class action lawsuit (unaffected by bankruptcy). Unfortunately, it's still the ace that we're still waiting for the right moment to roll out," he said.
Severe impact spreads from Celsius' risk of bankruptcy
This has also led to concerns about DeFi infections and rumors about the insolvency of C and 3AC that could affect NEXO prices.
The ability to recover capital from Celsius is extremely slim and only some users who own less than $25,000 on the platform have any hope of getting their assets back. Joshua Browder, founder of robotics lawyer DoNotPay tweeted a strategy detailing how users can get their money back on June 15, 2022.
Currently, these exchanges have not filed for bankruptcy protection. As a result, they are subject to small court claims. The duration of a small lawsuit is 1-2 months. 2. Sending a request letter is the first thing to do to file a lawsuit against small claims.
The request letter should state 1) how much you owe 2) why you think you are owed money.
Particularly for Celsius, you should send it by mail (request to return the receipt) to:
– Joshua Browder (@jbrowder1) June 15, 2022
