Creditor Tiffany Fong, who had $119,000 worth of crypto on Celsius Network, is being considered for legal action by Celsius
The potential action comes as Fong has been actively reporting on the bankruptcy case involving Celsius, which filed for Chapter 11 bankruptcy in July 2022, via YouTube and other social media platforms.
In a recent court filing, Celsius’ legal counsel Kirkland & Ellis International reported that it had worked 77 billable hours, worth roughly $72,000, on an invoice titled “Tiffany Fong litigation.”
While no concrete legal action has been formulated yet, the filing shows that Celsius’ legal counsel is considering the leaked information that Fong reported via her social media accounts.
Celsius’ law firm is also 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.
Fong has been accused of sharing leaked internal information, which she claims was given to her privately by disgruntled former Celsius employees.
Fong argues that she hasn’t done anything wrong, asserting that she didn’t break any nondisclosure agreements by reporting on the leaked information.
She said, “It’s bullshit, I didn’t do anything illegal. I’m not an employee, so I didn’t break an NDA nondisclosure agreement. I’m a creditor, and they owe me 3.1 BTC and 11.6 ETH.”
News Outlets reached out to Celsius for comment on the potential litigation but received no response by publication time. Fong is currently in New York attending the 2023 NYC NFT event, and a video posted to Twitter shows her approaching former CEO and founder Alex Mashinsky and his wife, Krissy Mashinsky.
Celsius Legal Action
In Summary the potential legal action against Celsius creditor Tiffany Fong highlights the tension between creditors and companies going through bankruptcy proceedings. While Fong argues that she didn’t break any nondisclosure agreements, Celsius’ legal counsel is considering the leaked information that she has reported via social media.
The case underscores the importance of confidentiality agreements in the crypto industry and the need for transparency during bankruptcy proceedings. It remains to be seen whether the situation will escalate to a legal battle between Fong and Celsius.