Famous Youtuber and crypto trader Ben Armstrong is suing altcoin project Celsius and its CEO. Keep following us for details.
Ben Armstrong sues Celsius
Over the past few days, Celsius Network has taken a hard hit in the crypto ecosystem. Bitcoin’s decline forced the company to take on more DAI debt to avoid liquidation. Now, one of the most popular assets and investor has taken action to take Celsius to court. As such, the company is facing more backlash from its own user base.
In a tweet, investor and YouTuber Ben Armstrong announced his decision to file a class action lawsuit against Celsius Network and its founder and CEO, Alex Mashinsky. He claims that the company is scamming people and is among those affected.
Debts Unable to use account balance to settle
According to Armstrong, there is enough money in his account at Celsius to pay off debts. But the altcoin wants him to send them more money for the same purpose. Armstrong explained:
Imagine a bankrupt company where you can’t withdraw your money without being asked to send them more money. It literally defies logic. Then you might be asking yourself the question: “Why don’t they allow you to pay the loan with the money/crypto/stablecoin in your account?
Ben Armstrong: This altcoin project brought us to cheating!
As we have mentioned in the news of Kriptokoin.com, basically, its funds were frozen. For this reason, Armstrong hesitates to send more money to an already bankrupt company. He claims that the company has gone bankrupt and that the money allegedly in the account is not really there. In this context, Armstrong states:
A great and sensible question. I’m glad you asked. It’s because they’re totally amazing. The money that appears in our account is not actually there. That’s the only reason we can’t use it. Not there. And these idiots dare to think we’ll be sending more?
According to Ben Armstrong this is a pure scam to try to bring in fresh money from users to pay off loans. Armstrong continues:
You see, when Ethereum reaches a certain number, we are liquidated. We lose all our collateral against the loan. So they try to take advantage of the fear in the market to fill their pockets.
It looks like Celsius has liquidations for their biggest positions at $16,500 BTC. Armstrong is of the opinion that the liquidation will happen soon. Armstrong says:
On the way to bankruptcy. Make no mistake, I’ve seen their game at this point, it’s only a matter of time before their biggest positions are liquidated at around $16,500 for BTC. This is coming. They know this. As this gets closer, they pull all the stops.
Ben Armstrong’s lawsuit against altcoin project found support
A few days ago, Celsius announced that all withdrawals, swaps and transfers have been halted. According to Armstrong, this is a hoax. Because they are literally holding people’s money hostage.
Ben Armstrong’s decision to file a class action resonated with many in the crypto market who thought it was the right decision. In fact, Armstrong is confident that his case, as well as the measures taken by other relevant authorities such as the US SEC, will succeed in punishing Celsius and its CEO for their misdemeanors.
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