Ben Armstrong, popularly known as BitBoy Crypto is taking the cessation of withdrawals by crypto lending platform Celsius more personally and has threatened to file a class-action lawsuit against the embattled lender.
Following his announcement on Wednesday stating;
“Today we will begin the process of bringing a Class Action Lawsuit against @CelsiusNetwork and Alex @Mashinsky,” BitBoy has reportedly been talking with a legal team with respect to the best approach to take in seeking legal redress for Celsius locking up his funds.
The crypto YouTuber, whose followers number in the millions, posited that he had loans that were due on Celsius and that he could not at the very least access his locked funds to service those debts. He said despite getting confirmation from his Celsius account rep, he had to send more funds to the platform to pay off those debts.
“Our account rep at @CelsiusNetwork is @ronald_loh. He told us we had enough money in our account to pay off a loan. But we can’t use money in our account. We HAVE TO SEND CELSIUS MORE MONEY TO PAY IT OFF.” he tweeted.
Amstrong said the only reason why Celsius will not let him use his funds is that the platform is insolvent. Insolvency is a term that is used for a firm that does not have the capacity to meet its debt obligations.
“So you may be asking yourself the question, “why would they not let you pay off the loan with money/crypto/stables that are already in your account?,” he said, “IT’S BECAUSE THEY ARE TOTALLY INSOLVENT. The money that shows in our account isn’t actually there. That’s the only reason we can’t use it. It’s not there. And these idiots have the audacity to think that we are going to send more?”
While the details of the approach to the class action or the plaintiffs joining him are still unclear, Celsius still has an active offer from Nexo to buy off its collateralized loans. Amidst the complexity being seen today, the next few weeks might be more challenging for Celsius, BitBoy, and the other parties involved.
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