Celsius Is Preparing To Sue Tiffany Fong For Leaking Confidential Information

Key Points:

• Celcius is reportedly preparing to sue crypto blogger and Celsius creditor Tiffany Fong for exposing internal information.
• According to a snapshot supplied by Fong, she presently has over $119,000 in crypto assets locked on Celsius.
• She has been aggressively reporting on the bankruptcy case since then, prompting the bankruptcy company to seek to sue her.

According to a court document, Celsius Network either meant to or is considering legal action against crypto blogger and Celsius creditor Tiffany Fong for exposing internal information.

Celsius’ lawyer Kirkland & Ellis International recorded 77 billable hours costing around $72,000 on an invoice headed ” Tiffany Fong lawsuit” in an itemized sixth monthly fee statement issued to the bankruptcy court of the Southern District of New York on April 14.

The legal firm’s work on this matter began on January 26, and the final stated hours of work were reported on February 6.

Although no particular legal action seems to have been recommended as of yet, the document indicates that Celsius’ legal was explicitly looking into the stolen material Fong reported on through her social media platforms.

According to a snapshot posted by Fong, she presently has about $119,000 in crypto assets, including Bitcoin (BTC), Ether (ETH), and Polygon (MATIC) held on Celsius after the business suspended withdrawals in mid-June 2022 before filing for Chapter 11 bankruptcy the following month.

She has been actively reporting on the bankruptcy case as it progresses on YouTube and other social media channels since then. Fong has disclosed leaked inside material on many occasions, which she says was supplied to her privately by angry former Celsius workers.

The legal firm also said in the filing that it was writing stop and desist letters for Fong, as well as a petition to compel, which normally asks courts to enforce a request for crucial material in a case.

Fong has reported on leaked internal material pertaining to corporate bids for Celsius assets, meaningful audio of private company meetings, and substantial transactions as former CEO and founder Alex Mashinsky’s activity, to mention a few instances.

Fong is presently in New York for the 2023 NYC NFT event, and in a tweet on April 15, she reported that she saw Alex Mashinsky and his wife, Krissy Mashinsky, out in public and approached them.

A video shared on Twitter shows the Mashinsky pair hurrying away while other crypto content makers, including BitBoy Crypto (Ben Armstrong), approach alongside Fong in an effort to engage them in the discussion.

Meanwhile, NovaWulf, a digital asset investment company, is prepared to take over all assets belonging to the defunct cryptocurrency Celsius Network and roll them into a new company after its debtor has been paid.

During the next five years, NovaWulf will administer the new firm, which will have a new name and a new board of directors and will be traded using a somewhat unproven way of placing tokenized equities on the blockchain. The five-year management term is renewable. NovaW and the official bankruptcy committee, which represents their interests, will choose the board of directors. The proposal may go into action as early as June 30.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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