The crypto market has been hit by a series of unfavourable occurrences that have affected enthusiasts and traders. Since the start of the year, the emerging asset class has seen its 2021 value more than halved, following a series of poor price performances.
Now, investors are looking to recoup some of their losses as crypto-facing businesses continue to fold in unprecedented debacles. One of the disgruntled investors is popular crypto Shiller Ben Armstrong, who has recently stated his interest in pursuing legal recourse in the recent Celsius network debacle.
BitBoy Crypto Wants to Sue But Can’t
Multiple protocols have been impacted by the Terra crash. Celsius Network was the first to move its $500 million UST to another protocol. This has not improved its situation as crypto prices continue to fall, which further impacts Celsius’s value. The protocol’s deposits with Lido Finance, a liquid staking provider, have lost their peg to Ether, putting the lending protocol in a tough spot. To stay stable, Celsius has had to halt customer withdrawals.
Several consumers are dissatisfied with the decision to halt withdrawals. A class-action lawsuit is being considered. BitBoy Crypto announced he would initiate a joint action in a tweet on June 16th.
However, the crypto influencer has changed his stance and said that he wouldn’t be able to proceed. According to him, this is due to his past affiliation with the project. He previously promoted the project to his thousands of followers and stated that this could serve as a ‘conflict of interest if he becomes the face of the lawsuit.
Additionally, I had an affiliate link for Celsius which pretty much nixes me as a leader for the suit which would be challenged as a conflict of interest.
However, I will assist in any way possible with a class action lawsuit. Inevitably someone will bring one.
— Bitboy Crypto (@Bitboy_Crypto) June 18, 2022
Nonetheless, BitBoy Crypto remains committed to the course. He claims he will work behind the scenes to ensure the platform reimburses all users.
Celsius’ Recent Troubles Started Much Earlier
Ben Armstrong, a prolific Twitter user and YouTuber, goes under the nickname BitBoy Crypto. The social media influencer has a huge reach, with over 800,000 followers on his Twitter platform and thousands more on YouTube.
BitBoy Crypto is a popular face in the crypto space. He posts daily market reports, promising projects, and tokens he invests in. The influencer’s turn-around position testifies to the growing issues crypto investors face.
According to a recent report taking the internet by storm, Celsius Network has lost investors’ funds in the past. Is Celsius Network Safe?
The report, published by Dirty Bubble Media on June 6, reveals that Celsius Network lost access to the private keys containing a minimum of 35,000 ETH tokens. The issue originated from its selected staking provider, Stakehound, where Celsius transferred over 42,000 ETH in February 2021. The cryptocurrency exchange is currently holding an unusable bag of stETH tokens without access.
We are first to report that #CelsiusNetwork lost at least 35,000 Ether in the Stakehound key loss debacle back in May 2021. Celsius is bagholding over 42,000 Stakehound stETH in verified wallets.https://t.co/YIDPHYIGng@Bitfinexed @DoombergT @BennettTomlin @QTRResearch
— Dirty Bubble Media: ☠️ (@MikeBurgersburg) June 6, 2022
The record loss was pegged at $72 million in the current ETH price. Celsius has since not made any official comments to address the issue.
Another loss was recorded in December 2021 when the Badger decentralised autonomous organisation (DAO) was hacked for $120 million. Celsius was said to have recorded a loss of $50 million in the malicious attack.
Way Forward
Presently, Celsius still does not permit withdrawals. The protocol continues to develop an action plan to cover its losses.
Celsius and its key players are working on a recovery plan. According to a statement from its lead investor BnkToTheFuture, short-term ease can be achieved using the recovery mechanism employed during Bitfinex’s hack.
The recovery plan contains the BnkToTheFuture agenda to pay investors with its BFX tokens comparable to the amount the investors lost during the hack. Also, BnkToTheFuture asserted that the recovery plan would guarantee that they settle all investors within a nine-month window.
Read more: BitBoy Crypto Partners with Sports NFT Platform The Players Lounge.
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