Just two weeks after appearing in Ask Me Anything (AMA) with Celsius founder Alex Mashinsky, YouTuber Ben Armstrong has announced that he intends to file a class action lawsuit against the lending community and its executive director.
Armstrong made legal threats through Twitter June 15 and has since provided more information in many threads. Hans case is about being unable to repay a loan with existing funds on the platform, and instead having to deposit new funds to repay the loans from:
“[Our account rep] told us we had enough money in our account to pay off the loan. But we can not use money in our account. WE HAVE TO SEND CELSIUS MORE MONEY TO PAY IT. “
“Imagine a bankrupt company that you can not withdraw your money from Ask you to send them more money,” he added.
Armstrong stated that he was currently working on the process of gathering all the “information, documents, credit information, etc.” while talking to lawyers to explore the best ways to file a lawsuit. Plaintiffs have yet to be added as Armstrong has not “officially started moving” yet.
BitBoy Crypto is the second highest-grossing YouTube account with approximately 1.45 million subscribers and primarily provides marketing / event feedback. The channel is only behind the Coin Bureau and its 2.07 million subscribers, although BitBoy Crypto also has plenty of opponents, some claiming to have been paid to promote dubious cryptocurrencies in the past.
Armstrong’s attitude towards Celsius has changed a lot since just two weeks ago, when he was shown at the AMA meeting with Mashinsky on Celsius’ YouTube channel.
“And today I am the victim. “Kicking myself for wondering how I made this so bad and so far,” he said.
Celsius is either fighting bankruptcy or is experiencing serious liquidity problems due to the collapse of the cryptocurrency market. The company suspended audits on June 13 and has also reportedly swapped $ 320 million in assets to repay loans and avoid liquidation of diversified financing systems (DeFi) such as AAVE.
One point regarding a possible lawsuit, however, is that if Celsius files for bankruptcy, it will trigger a provision called “automatic stay” which would prevent creditors from taking collection action against the company.
Celsius has reportedly been involved in restructuring lawyers from Akin Gump Strauss Hauer & Feld to find possible solutions to their financial problems, but Armstrong claims that this type of lawyer “specialized in preparing companies for bankruptcy.
“Even if Celsius files for bankruptcy, we have discovered some possible solutions to a class action lawsuit (not filed for bankruptcy). “Unfortunately, I have to keep it close to the west for now,” he said.
Connected: Fear of DeFi infection and rumors of bankruptcy of Celsius and 3AC could weigh on NEXO prices
In terms of recovering money from Celsius, there seems to be at least a chance for users with less than $ 25,000 on the platform to get their assets in the near future. Joshua Browder, founder of Robotics Lawyer DoNotPay, tweeted a step-by-step policy on June 15 on how users can get their money back:
“At present, these stock exchanges have not yet applied for bankruptcy protection. As a result, they are subject to small-scale judgments. Small court cases usually take 1-2 months. As long as it takes longer than that, this policy will work. “
2. To file a claim, the first step is to send a claim.
The letter of credit should state 1) how much you owe 2) why you think you have the money.
For Celsius in particular, you should send it by post (requesting a receipt) to:
– Joshua Browder (@ jbrowder1) June 15, 2022
Mail Bonus – #BitBoy #founder #threatens #class #action #lawsuit #Celsius