Youtuber Ben Armstrong, who is known as Bitboy, is suing Celsius and its CEO, Alex Mashinsky, in a class-action lawsuit.
Armstrong announced on Twitter that he would file a class-action lawsuit against Celsius and Alex. Celsius may now have to face further legal challenges on top of the ones they already have. Ben claims to be one of the people who has been harmed and promises to provide more information regarding the case in the coming days. According to Armstrong, the company has sufficient finances to pay off its debts.
“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.”
Celsius Completely Halts Payments
Celsius, a popular crypto staking and lending platform, is on the decline, with speculation piling up one after the other. This weekend was unusually hard for the Celsius network. The platform was slammed for its mismanagement of funds. According to reports, the crypto-staking network had 1.7 million users and $12 billion in customer assets in May.
In the midst of all this, Celsius announced the suspension of withdrawals, swaps, and transfers on their blog. In a long blog post, the platform stated that “extreme market conditions” prompted it to do so. According to the blog post, actions have been taken to stabilize Celsius’s liquidity and operations.
For the past three days, Celsius has put a complete halt to swaps, withdrawals, and trading. The platform that assured users that they may withdraw their cryptocurrency at any time has now held it for three days.