Celsius Network Considers Legal Action Against Crypto Blogger
Celsius Network, a crypto lending platform, has been considering legal action against Tiffany Fong, a crypto blogger and Celsius creditor, for sharing leaked internal information regarding the company’s bankruptcy case. Fong, who has roughly $119,000 worth of crypto assets locked on Celsius, has been reporting on the bankruptcy case via YouTube and other social media platforms since the firm paused withdrawals in mid-June 2022 and filed for Chapter 11 bankruptcy the following month.
According to a recent court filing, Celsius’ legal counsel, Kirkland & Ellis International, has been working on the case for Fong since January 26, 2023. The filing shows that the law firm had worked 77 billable hours worth roughly $72,000 on an invoice titled “Tiffany Fong litigation” as of April 14, 2023. While no concrete legal action has been finalized yet, the filing suggests that Celsius’ legal counsel has been looking into the leaked information Fong reported on via her social media accounts.
Fong claims that she received the leaked information privately from disgruntled former Celsius employees, and has reported on various internal details, such as company bids on Celsius assets, alleged audio of private company discussions, and alleged transaction activity of executives such as former CEO and founder Alex Mashinsky.
In the filing, Celsius’ law firm also outlined that it was drafting cease and desist letters for Fong and a motion to compel, which generally asks courts to enforce a request for information relevant to a case. While Fong maintains that she has not done anything illegal, Celsius Network is seeking to prevent further dissemination of internal information related to its bankruptcy proceedings.
Fong’s attendance at the 2023 NYC NFT event has added fuel to the fire. In a Twitter post on April 15, she revealed that she had found Alex Mashinsky and his wife, Krissy Mashinsky, in public and approached them. A video posted to Twitter also shows the Mashinsky couple hurriedly walking away as other crypto content creators, such as BitBoy Crypto, approach alongside Fong in an attempt to engage them in conversation.
Celsius Network’s bankruptcy case is ongoing, with the company’s legal counsel actively pursuing action against Fong for leaking internal information. The case highlights the potential legal consequences of sharing confidential information regarding a company’s bankruptcy proceedings, even if the information is provided by former employees.