YouTuber Ben Armstrong, better 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 face legal challenges that already exist. Ben claims to be one of those who have been harmed and promises to provide more details about the case in the coming days. According to Armstrong, the company has enough finances to pay off its debt.
“This is a pure scam that tries to get fresh money from users to pay off loans. You see, once Ethereum reaches a certain number, we get liquidated and lose all our collateral against the loan. So they are trying to take advantage of the fear of the market to loose their pockets.
Celsius Stops Payments Completely
Celsius, a popular crypto staking and lending platform, is on the decline, with one speculation after another. This weekend was unusually difficult for Celsius Network. The platform was slammed for mismanagement of funds. According to reports, the crypto-staking network had 1.7 million users and $12 billion in client assets in May.
In the midst of all this, Celsius announced the suspension of withdrawals, swaps and transfers on its blog. In a lengthy blog post, the platform said that “extreme market conditions” prompted it to do so. According to the blog post, actions have been taken to stabilize Celsius’ liquidity and operations.
For the past three days, Celsius has completely banned swaps, withdrawals and trading. The platform, which assured users that they can withdraw their cryptocurrency at any time, is now on hold for three days.