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Celsius plans to sue a creditor for disclosing internal information

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TL;DR

  • Celsius Network either intended to take legal action against crypto blogger Tiffany Fong for disclosing confidential information or may be considering doing so.
  • She has been regularly updating YouTube and other social media sites with her reporting on the bankruptcy case as it develops.
  • Fong has written about internal information leaks involving corporate bids for Celsius assets, purported recordings of confidential company talks, and purported transaction activity.

According to a court filing, crypto blogger Tiffany Fong is a creditor of the bankrupt cryptocurrency lender Celsius Network, and Celsius Network either intended to take legal action against her for disclosing confidential information or may be considering doing so.

According to a screenshot posted by Fong, she presently has crypto assets worth over $119,000 held on Celsius, including Bitcoin (BTC), Ether (ETH), and Polygon (MATIC). This is despite the fact that the company temporarily halted withdrawals in mid-June 2022 before declaring bankruptcy the following month.

Since then, she has been regularly updating YouTube and other social media sites with her reporting on the bankruptcy case as it develops. Fong has frequently divulged stolen company data, which she claims was handed to her in confidence by unhappy former Celsius workers.

Kirkland & Ellis International, Celsius’ legal representatives, stated in an itemized sixth monthly fee statement submitted to the Southern District of New York bankruptcy court on April 14 that it had spent 77 billable hours, or roughly $72,000, on an invoice labeled “Tiffany Fong litigation.”

The law firm began working on this matter on January 26 and reported its final hours of work on February 6.

Celsius leaked information

The filing demonstrates that Celsius’ legal counsel was particularly looking into the leaked information Fong reported on via her social media sites, even if a specific legal action doesn’t appear to have been developed as of yet.

The motion to compel, which often seeks courts to enforce a request for information pertinent to a case, and cease and desist letters for Fong was also included in the filing by Celsius Law Firm.

Fong has written about internal information leaks involving corporate bids for Celsius assets, purported recordings of confidential company talks, and purported transaction activity of executives such as former CEO and founder Alex Mashinsky, to mention a few.

Fong, who is presently in New York for the 2023 NYC NFT event, added fuel to the fire by tweeting on April 15 that she had encountered Alex Mashinsky and his wife Krissy Mashinsky in the street and approached them.

In a video that was uploaded to Twitter, the Mashinsky couple can be seen hastily leaving when other crypto content producers including BitBoy Crypto (Ben Armstrong) and Fong approach to strike up a dialogue.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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