BitBoy Crypto founder threatens Celsius with class action lawsuit

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The founder of BitBoy Crypto accusedcryptocurrency lending platform Celsius for illegally blocking access to funds in user accounts and announced its readiness to file a class action lawsuit.

Ben Armstrong, YouTuber,crypto enthusiast and founder of BitBoy Crypto, accused Celsius of creating artificial obstacles to access users' current accounts and extorting funds to repay loan obligations.

“Celsius and @Mashinsky are deceiving people.Our account manager told us that we had enough money in our account to pay off the loan. But we cannot use them, but must additionally send money to Celsius for repayment,” he wrote on Twitter.

Armstrong is outraged by Celsius's position - hecalled the company insolvent and suggested that its possible bankruptcy was a matter of time. In his opinion, the only reason why BitBoy Crypto cannot use the money that appears in the company’s account is that it is not actually there.

The YouTuber stated that he intends to initiateclass action against the Celsius platform and its CEO. To this end, he began consultations with lawyers and work on collecting evidence.

Celsius' problems began immediately after its release.from the Anchor protocol and the collapse of the Terra project, which provoked serious liquidity problems as a result of the fall of the cryptocurrency market. The company suspended withdrawals on June 13 and also transferred approximately $320 million in assets to repay loans and avoid liquidation on decentralized finance (DeFi) platforms.