{"id":463623,"date":"2022-06-16T08:43:37","date_gmt":"2022-06-16T05:43:37","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitboy-founder-threatens-class-action-lawsuit-against-celsius\/"},"modified":"2022-06-16T08:43:37","modified_gmt":"2022-06-16T05:43:37","slug":"bitboy-founder-threatens-class-action-lawsuit-against-celsius","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitboy-founder-threatens-class-action-lawsuit-against-celsius\/","title":{"rendered":"# BitBoy founder threatens class action lawsuit against Celsius"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2fcd96d6f34\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2fcd96d6f34\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitboy-founder-threatens-class-action-lawsuit-against-celsius\/#%E2%80%9D_BitBoy_founder_threatens_class_action_lawsuit_against_Celsius_%E2%80%9C\" >&#8221; BitBoy founder threatens class action lawsuit against Celsius  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_BitBoy_founder_threatens_class_action_lawsuit_against_Celsius_%E2%80%9C\"><\/span>&#8221; BitBoy founder threatens class action lawsuit against Celsius  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvMTQ4MmI0NmQtMDJmNS00NjRmLTkwYWUtMWZiZWQwMzgyMzk5LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Just <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=9zAVFmiyDhE\">two weeks after<\/a> <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>earing in an ask me anything (AMA) with Celsius founder Alex Mashinsky, crypto <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Youtube<\/a>r Ben Armstrong has announced he intends to file a class action lawsuit against the lending platform and its chief executive. <\/p>\n<p>Armstrong made legal threats via<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Bitboy_Crypto\/status\/1537258327117373441\"> Twitter<\/a> on June 15, and has since provided more detail in multiple threads. His <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Bitboy_Crypto\/status\/1537017691298480128\">issue<\/a> is centered on being unable to pay down loans with existing funds on the platform, and instead having to deposit new funds to pay the loans off:<\/p>\n<blockquote><p>\u201c[Our account rep] told us we had enough money in our account to pay off a loan. But we can\u2019t use money in our account. We HAVE TO SEND CELSIUS MORE MONEY TO PAY IT OFF.\u201d<\/p><\/blockquote>\n<p>\u201cImagine an insolvent company that you can\u2019t withdraw your money from ASKING YOU TO SEND THEM MORE MONEY,\u201d he added. <\/p>\n<p>Armstrong stated that he is currently working through the process of getting all \u201cdisclosures, documents, loan details, etc\u201d put together while speaking to attorneys to explore the best ways to go about the class action. Co-plaintiffs are yet to be added as Armstrong hasn\u2019t \u201cofficially began moving\u201d yet. <\/p>\n<p>BitBoy Crypto is the second most subscribed crypto YouTube account with roughly 1.45 million subscribers and primarily provides commentary on market <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>\/events. The channel is only behind Coin Bureau and its 2.07 million subscribers, although BitBoy Crypto has plenty of detractors too, some of whom <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reddit.com\/r\/CryptoCurrency\/comments\/qrw9g4\/this_youtuber_scams_his_fans_bitboy_crypto\/\">allege<\/a> that he has been paid to promote dubious crypto assets in the past. <\/p>\n<p>Armstrong\u2019s sentiments towards Celsius have swung wildly from just two weeks ago, when he was <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=9zAVFmiyDhE\">featured<\/a> on the\u00a0 ask me anything (AMA) session with Mashinsky on Celsius\u2019 YouTube channel.<\/p>\n<p><strong>\u201c<\/strong>And today I\u2019m the victim. Kicking myself for wondering how I let this get so bad and so far,\u201d he said. <\/p>\n<p>Celsius is battling either insolvency or it&#8217;s experiencing severe liquidity troubles as a result of the crypto market plunge. The firm paused withdrawals on June 13, and also reportedly shifted around $320 million worth of assets to pay down loans and avoid liquidation on decentralized finance (DeFi) platforms such as AAVE. <\/p>\n<p>One issue to a potential lawsuit however, is if Celsius files for <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nolo.com\/legal-encyclopedia\/will-a-pending-lawsuit-go-away-if-i-file-for-bankruptcy.html\">bankruptcy <\/a>it will trigger a provision called \u201cautomatic stay\u201d, which would prevent creditors from pursuing collection activity against the firm. <\/p>\n<p>Celsius has reportedly onboarded restructuring lawyers from Akin Gump Strauss Hauer &amp; Feld to find potential solutions for its financial troubles, however Armstrong claims that these types of lawyers \u201cspecialize in MOSTLY preparing companies for bankruptcy.\u201d<\/p>\n<p>\u201cEven if Celsius does file bankruptcy, we have discovered some potential workarounds to still do a class action lawsuit (not effected by bankruptcy). Unfortunately I have to keep that one close to the vest for now,\u201d he said. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>DeFi contagion fears and rumors of Celsius and 3AC insolvency could weigh on NEXO price<\/em><\/strong><\/p>\n<p>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. Joshua Browder, the founder of robot lawyer DoNotPay tweeted a step-by-step strategy on June 15 on how users might be able to get funds back: <\/p>\n<blockquote><p>\u201cAs 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.\u201d<\/p><\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">2. To file a small claims lawsuit, the first step is to send a demand letter.<\/p>\n<p>The demand letter should say 1) how much you are owed 2) why you think you are owed the money. <\/p>\n<p>For Celsius specifically, you should mail it (return receipt requested) to:<\/p>\n<p>\u2014 Joshua Browder (@jbrowder1) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/jbrowder1\/status\/1536907145530068992?ref_src=twsrc%5Etfw\">June 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitboy-founder-threatens-class-action-lawsuit-against-celsius\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; BitBoy founder threatens class action lawsuit against Celsius &#8220; Just two weeks after appearing in an ask me anything (AMA) with Celsius founder Alex Mashinsky, crypto Youtuber Ben Armstrong has announced he intends to file a class action lawsuit against the lending platform and its chief executive. Armstrong made legal threats via Twitter on&#8230;<\/p>\n","protected":false},"author":1,"featured_media":463624,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvMTQ4MmI0NmQtMDJmNS00NjRmLTkwYWUtMWZiZWQwMzgyMzk5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[77595,117,55229,49],"class_list":["post-463623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-lending","tag-business","tag-law","tag-youtube"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/463623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=463623"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/463623\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/463624"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=463623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=463623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=463623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}