- Celsius Network is planning to sue crypto blogger Tiffany Fong for sharing confidential internal information related to the company’s bankruptcy case.
- The legal counsel, Kirkland & Ellis International, has reportedly spent 77 billable hours and around $72,000 on the “Tiffany Fong litigation” invoice.
- Fong has played a significant role in the Celsius Network collapse by actively reporting on the case, sharing leaked internal information, and drawing media attention.
Bankrupt cryptocurrency lender, Celsius Network, is reportedly planning to sue crypto blogger and creditor Tiffany Fong for sharing confidential internal information. As a key figure in the Celsius Network’s collapse, Fong has been actively reporting on the company’s bankruptcy case via YouTube and other social media platforms, sometimes revealing leaked internal details allegedly obtained from dissatisfied former employees.
Legal Action Looms Over Tiffany Fong
The court filing in the Southern District of New York suggests that Celsius Network’s legal counsel, Kirkland & Ellis International, has spent 77 billable hours, amounting to approximately $72,000, on an invoice titled “Tiffany Fong litigation.” The work on this case started on January 26, with the last recorded hours of work reported on February 6.
Although no specific legal action has been formulated yet, the filing shows that Celsius’ legal counsel has been investigating the leaked information Fong shared through her social media accounts. Furthermore, the filing reveals that the law firm has been drafting cease and desist letters for Fong and a motion to compel, which typically asks courts to enforce a request for information relevant to a case.
Fong’s Role in the Celsius Network Collapse
Tiffany Fong has been an influential figure in the Celsius Network’s downfall, frequently updating her followers on the bankruptcy case via her YouTube channel and other social media platforms. She has shared confidential internal information on numerous occasions, allegedly obtained from dissatisfied former employees of the bankrupt company.
As a result of the company’s failure, Fong has approximately $119,000 worth of cryptocurrencies inaccessible on the Celsius platform, including Bitcoin (BTC), Ether (ETH), and Polygon (MATIC). Celsius had paused withdrawals in mid-June 2022 before filing for Chapter 11 bankruptcy the following month.
Impact on the Crypto Community and Reactions
Tiffany Fong’s tweets and videos have drawn significant media attention, sparking a media frenzy that has even caught the attention of US lawmakers. As her actions continue to make headlines, Fong remains unapologetic, asserting that she has not done anything illegal and has not broken any nondisclosure agreements (NDAs) as she is not an employee of Celsius Network. She claims her role as a creditor entitles her to information about the company’s bankruptcy and the handling of her locked assets.
In a recent event, Fong approached former Celsius Network CEO Alex Mashinsky and his wife, Krissy Mashinsky, at the 2023 NYC NFT event. A video posted to Twitter shows the Mashinsky couple walking away hurriedly as other crypto content creators, such as BitBoy Crypto (Ben Armstrong), attempt to engage them in conversation.
As the drama between Celsius Network and Tiffany Fong continues to unfold, the crypto community is left to wonder about the implications of this legal battle on the industry’s future. With no official comment from Celsius Network regarding the legal action against Fong, the community eagerly awaits further developments.