Celsius Network Intends to Sue Creditor Tiffany Fong

Based on a court document, cryptocurrency blogger Tiffany Fong, who is one of the creditors of the insolvent cryptocurrency lender Celsius Network, claims to be in the danger of being sued as the company is either planning to take actions against her for disclosing confidential information or may do so in the future.

According to an image posted by Fong, she presently has about $119,000 in crypto assets held on Celsius, including Bitcoin, Ether, and Polygon MATIC.

Fong Spilled Celsius’ Secrets 

Several times, Fong is found to divulge confidential company data that she alleges was supplied to her informally by unhappy former Celsius workers.

Kirkland & Ellis International, Celsius’ legal representative, stated in an itemized sixth monthly fee statement filed to the Southern District of New York court for bankruptcy on April 14 that it had spent 77 hourly fees, or roughly $72,000, on an invoice labeled “Tiffany Fong litigation.” According to the document, Celsius’ defense attorney especially investigated the content that Fong passed through her social media platforms.

To cite a few instances, Fong has posted about confidential matters that have been leaked including corporate bids for Celsius assets, purported recordings of confidential company talks, and supposed transaction activity of leaders such former CEO and founder Alex Mashinsky.

Notably, Fong is presently in New York for the 2023 NYC NFT event. She said in a tweet on April 15 that she confronted Alex Mashinsky and his wife Krissy Mashinsky after spotting them in public.

Since the cryptocurrency lender disclosed paperwork including personal information as part of its bankruptcy procedures, Celsius’ clients have been on edge as some were concerned that they may be subject to cybercrime, hacking, and other forms of online hazards. 

Additionally, the insolvent lender Celsius Network said that its clients can again withdraw their digital assets 263 days after it stopped allowing withdrawals from its customers in the run-up to its bankruptcy declaration.