- Crypto blogger under fire for reporting leaked information.
- Celsius network has been building a litigation suit against the crypto blogger, Tiffany Hong.
- Possible cease and desist order for Tiffany Hong is in the works.
Court documents that recently surfaced revealed that crypto lending firm Celsius Network intends to or is looking into legal actions against a crypto blogger and Celsius creditor, Tiffany Fong.
The blogger shared a screenshot on Twitter that revealed she had crypto assets worth $119,000 locked up in Celsius, including Bitcoin, Ether, and Polygon, after the lending company decided to halt withdrawals from its platform in the middle of June 2022, just before it filed for bankruptcy in July 2022.
Since the withdrawals were stopped, crypto blogger Tiffany Fong has been covering the bankruptcy case as it develops. She has posted internal documents that she alleges were leaked by former Celsius employees who are feuding with the cryptocurrency lender.
The news about the potential lawsuit against the cryptocurrency blogger was revealed in an itemized sixth-monthly fee statement that Celsius, Kirkland & Ellis International obtained and submitted to the bankruptcy court. The law firm reportedly added that they had worked for 77 paid hours, valued at about $72,000, on an invoice titled Tiffany Fong.
The firm reportedly began work on this litigation by January 26th, with the last records of it being on February 6th. While there has not yet been a legal concrete legal action taken by Celsius yet, the filings sent to the bankruptcy court show that the crypto lender’s counsel looked into the leaked internal information that Tiffany Fong spread on her social media accounts.
Celsius’s legal counsel also added information of an intention to serve Tiffany Fong with a cease and desist letter and a motion to compel, which is used to request the court to enforce a request for any helpful information that could be relevant to a case.
Some of the information Tiffany Fong leaked include alleged audio of conversations private to the company and an alleged transaction activity between executives of Celsius, like that of their former CEO and the company’s founder, Alex Mashinsky.
Tiffany Fong also reposted on leaked internal information regarding the bidding for Celsius’ assets, in which the blogger insisted that the bids from firms like Binance, NovaWulf, Cumberland, and others had submitted proposals for Celsius assets back in November 2022 and did not receive attention from the crypto lender, she also went on to add numbers of how much each company was bidding.
She claimed that she reported on the information because she believed that the creditors of Celsius deserved more transparency than the company had given to them and added that they had a right to know about all the bids Celsius had received concerning their assets.
Conclusion
While Celsius has not filed an actual lawsuit against the blogger yet, there is every possibility of it happening with the recent information given to the bankruptcy court by Celsius’s counsel.
