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Famous Youtuber And Trader Ben Armstrong Bringing A Class Action Lawsuit Against Celsius And Its CEO

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Ben Armstrong, a famous crypto trader with a Youtube following of 1.45M and a Twitter following of 851K, is going to file a case against Celsius.



Over the last few days, the Celsius Network has experienced a hard hit on its crypto ecosystem. The fall of Bitcoin has forced the company into taking on more DAI debt to prevent liquidation. Now, the company is facing even more backlash from its own user base as one of the most popular entities and investor moves to take Celsius to court.

In a tweet, investor and YouTuber Ben Armstrong announced the decision to file a class action lawsuit against the Celsius Network and its founder and CEO, Alex Mashinsky. He claims that the company is scamming people, with him being among the affected.

 

Can’t Use Account balance To Settle Debts

According to Armstrong, his account at Celsius has enough funds to pay off debts, but the company wants him to send them more money for the same purpose.

“Imagine an insolvent company that you can’t withdraw your money from ASKING YOU TO SEND THEM MORE MONEY. Literally defies logic. So you may be asking yourself the question, “why would they not let you pay off the loan with money/crypto/stables that are already in your account?”

Basically, his funds are frozen. For this reason, Armstrong is wary of sending an already insolvent company any more money. He claims that the company is heading into bankruptcy and that the money claimed to be in the account isn’t really there.

“Great and logical question. Glad you asked. IT’S BECAUSE THEY ARE TOTALLY INSOLVENT. The money that shows in our account isn’t actually there. That’s the only reason we can’t use it. It’s not there. And these idiots have the audacity to think that we are going to send more?

This is a PURE SCAM to try to bring in fresh money from users to pay off loans. You see, once Ethereum hits a certain number, we get liquidated and lose all of our collateral against the loan. So they are trying to take advantage of fear in the market to pad their pockets.”

Apparently, Celsius has the liquidation for their largest position at $16,500 BTC price. Armstrong is of the opinion that the liquidation will happen soon.

“As they head towards bankruptcy. Make no mistake about it, at this point now that I see their game, it’s only a matter of time before their biggest position gets liquidated at ~$16,500 for $BTC. That’s coming. They know it. As that gets closer, they are pulling out all the stops.”

A few days ago, Celsius announced a stoppage of all withdrawals, swaps, and transfers. According to Armstrong, this is a scam because they’re literally holding people’s money hostage.

The Lawsuit

Ben Armstrong’s decision to file a class action lawsuit has resonated with many in the crypto market who feel it’s the right decision. As a matter of fact, Armstrong is confident that his lawsuit, as well as action taken by other relevant authorities like the US SEC, is bound to succeed in punishing Celsius and its CEO for their misdeeds.

 

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Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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