HomeNEWSBitboy founder sues Celsius over withdrawal restrictions

Bitboy founder sues Celsius over withdrawal restrictions


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A popular crypto YouTuber and Bitboy founder, Ben Armstrong recently announced his plan to institute a class-action lawsuit against a lending firm, identified as Celsius, and its chief executives. The YouTuber made the revelation in a tweet relayed via his official handle. As reported, his decision to take a legal action against Celsius comes barely two weeks after his appearance in Ask Me Anything (AMA) with Alex Mashinsky.

Armstrong said the decision to sue Celsius manifested owing to his inability to pay up his loans with existing funds on the platform. According to him, the lending platform foiled his effort to pay up the loans using his existing funds on the network. The crypto YouTuber further that Celsius, instead requested that he pay up the loans with fresh funds.

The Bitboy founder maintained that his venture possesses enough funds in its Celsius account to settle loans. He, however, lamented the refusal of the platform to allow them to use the funds for loan settlement. According to him, his team is requested to send more money to Celsius to make the payment possible.

Additionally, the founder queried how an “insolvent firm” wants his team to send money without accessing their money on the platform. The crypto YouTuber, however, confirmed his plan to process all necessary disclosures, documents, and loan details to aid the lawsuit. Furthermore, he reiterates his commitment to securing the services of attorneys in a bid to get the best out of the legal tussle.

Celsius facing liquidity crises

According to reports, the lending platform currently endures complicated liquidity crises or insolvency. This crisis, as revealed, is not unconnected to the prevailing downturn in the global crypto market. Recall that on June 13, Celsius suspended withdrawals and consequently allocated about $320 million in assets to pay down loans. The platform made the decision to totally avert liquidation on decentralized finance outlets.

Celsius recently secured the services of Akin Gump Strauss Hauer & Field lawyers to solve its financial crisis. Armstrong reacted, saying the onboarded lawyers appear unfit to handle the issue and tend to further plunge companies into bankruptcy.

As reported, Bitboy Crypto emerged as the second most subscribed crypto account on Youtube. This simply means only Coin Bureau appears ahead of Bitboy crypto in terms of patronage. The former reportedly enjoys about 2.07 million subscribers. More so, the platform reportedly enjoys about 145 million subscribers as of press time. Lastly, Bitboy crypto avails its subscribers with detailed analyses of market variables in the crypto world.

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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