Celsius Network Considers Legal Action Against Crypto Blogger

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Celsius Network, a crypto lending platform, considered legal action against Tiffany Fong, a crypto blogger and creditor of Celsius, for sharing leaked inside information regarding the company’s bankruptcy case. Fong, who holds around $119,000 in Celsius-locked crypto assets, has been reporting on the bankruptcy case via YouTube and other social media platforms since the firm suspended 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 Fong case since January 26, 2023. The filing shows the law firm worked 77 billable hours worth approximately $72,000 on a bill titled “Tiffany Fong Litigation” as of April 14, 2023. While no concrete legal action has yet been filed, the filing suggests Celsius’ attorney reviewed information disclosed by Fong through his social media accounts.

Fong claims she received the privately leaked information from disgruntled former Celsius employees and reported on various inside details, such as corporate bids on Celsius assets, alleged audio recordings of private companies and alleged dealing activities of executives such as the former CEO and founder. Alex Machinsky.

In the filing, Celsius’ law firm also said it drafted cease-and-desist letters for Fong and a motion to compel, which typically asks the courts to execute a request for information relevant to a affair. While Fong maintains that she did nothing illegal, Celsius Network is seeking to prevent the further release of inside information related to her bankruptcy proceedings.

Fong’s participation in the NYC NFT 2023 event added fuel to the fire. In a Twitter post on April 15, she revealed that she found Alex Mashinsky and his wife, Krissy Mashinsky, in public and approached them. A video posted to Twitter also shows the Mashinsky couple hastily 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 filing is ongoing, with the company’s legal counsel actively pursuing lawsuits against Fong for leaking inside information. The case highlights the potential legal consequences of sharing confidential information about a company’s bankruptcy proceedings, even if the information is provided by former employees.

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