Yesterday, major crypto commentator “Bitboy” (real name Ben Armstrong)—who hosts a YouTube channel with 1.45M subscribers—announced that he is working on a class action lawsuit targeting the troubled crypto platform Celsius.
By way of background, the Celsius Network purported to be a sort of central gateway to crypto. It was to be a fintech app that allowed the trading of crypto, as well as the ability to take loans in dollars against one’s crypto deposits. The network also had its own native token, CEL, which was said to offer rewards, discounts and points for using Celsius services. A few days ago, the platform issued a blog post announcing a hold on withdrawals, swaps, and transfers due to what it called “extreme market conditions.”
Celsius had previously raised a notable $864 million through venture capital and was poised to be a major player in the crypto sphere. The network reportedly had control of over $3 billion worth of funds for a user base of 1.7 million.
As noted before, crypto litigation is on the rise. There will likely be many more lawsuits in the space in the next few months.