BitBoy Crypto’s Ben Armstrong has slammed Celsius for halting withdrawals for customers and claimed that he is in the process of filing a class-action lawsuit against the firm.
Armstrong’s sentiments towards Celsius have swung wildly from just two weeks ago, when he wasAnd today I’m the victim. Kicking myself for wondering how I let this get so bad and so far,” he said.
Celsius is battling either insolvency or it's experiencing severe liquidity troubles as a result of the crypto market plunge. The firm paused withdrawals on June 13, and also reportedlyOne issue to a potential lawsuit however, is if Celsius files for it will trigger a provision called “automatic stay”, which would prevent creditors from pursuing collection activity against the firm.from Akin Gump Strauss Hauer & Feld to find potential solutions for its financial troubles, however Armstrong claims that these types of lawyers “specialize in MOSTLY preparing companies for bankruptcy.”
“Even if Celsius does file bankruptcy, we have discovered some potential workarounds to still do a class action lawsuit . Unfortunately I have to keep that one close to the vest for now,” he said.In terms of recouping funds from Celsius, there does at least appear to be a potential option for users with less than $25,000 on the platform to obtain their assets in the immediate future.
“As of right now, these exchanges have not yet filed for bankruptcy protection. Therefore, they are subject to small claims court judgements. Small claims court cases typically take 1-2 months. As long as this drags on longer than that, this strategy will work.”The demand letter should say 1) how much you are owed 2) why you think you are owed the money.