Celsius Network Considers Suing Media Personality For Leaks
Crypto lender Celsius Network is reportedly preparing to sue media personality and creditor Tiffany Fong for allegedly disclosing confidential information. Fong, however, has denied any wrongdoing, claiming that a non-disclosure agreement (NDA) did not bind her to keep the sensitive details private.
According to reports, the now-bankrupt Celsius Network is preparing to sue a creditor and media personality, Tiffany Fong, for disclosing confidential informationhttps://t.co/F41twQkSbC
— crypto.news (@itscrypto_news) April 15, 2023
According to reports, Fong has over $119,000 worth of Bitcoin, Ethereum, and Polygon locked on Celsius Network, which halted withdrawals in the middle of June 2022 before filing for Chapter 11 bankruptcy protection the following month. Since then, Fong has been providing real-time updates on the bankruptcy case through YouTube and other online media platforms.
Paralegal Ken Sturek billed creditors for hours of “work” spent looking through @TiffanyFong_’s Social Media and then outsourcing the voyeurism to @FTIConsulting.
Ken should consider becoming a reporter for the @nypost if his law gig doesn’t pan out. pic.twitter.com/1Bl16dgmgk
— Cam Crews (@camcrews) April 14, 2023
Legal Representation Charges
However, Celsius Network’s legal representation, Kirkland & Ellis International, has submitted an itemized six-monthly fee statement to the Southern District of New York in bankruptcy court, indicating that they charged around $72,000 for their work on an invoice labeled “Tiffany Fong litigation.”
The bankruptcy petition reveals that Celsius Network either planned to sue Fong for disclosing confidential information or is considering doing so. Fong has reportedly disclosed confidential material allegedly supplied in confidence by disgruntled former employees of Celsius.
Among other things, Fong has reported on purportedly leaked recordings of confidential business talks and the purported transaction activity of executives, including former CEO and founder Alex Mashinsky, bidding on Celsius assets.
Investigating Leaked Material
Celsius’s legal counsel was reportedly investigating the leaks of material Fong disclosed on her social media pages, and the document also revealed that Celsius’s legal firm was preparing stop and desist letters for Fong and a petition to compel, which asks the court to make the production of evidence.
Adding fuel to the flames, Fong posted on Twitter on April 15 that she had approached Alex and Krissy Mashinsky in public when they were in New York for the 2023 NYC non-fungible token (NFT) event. A Twitter video shows Fong and other crypto content artists, including Ben Armstrong, popularly known as BitBoy Crypto, approaching the Mashinskys to chat, but the pair quickly backs away.
The legal action could have significant implications for both parties, with Fong facing a potential legal battle that could cost her significant amounts of money, while Celsius Network could suffer significant damage to its reputation if the allegations of confidential information being leaked are proven to be true. The outcome of the case remains to be seen.
