Bankrupt cryptocurrency lender Celsius Network intends or may consider legal action against cryptocurrency blogger and Celsius creditor Tiffany Fong for leaking inside information, a court filing indicates.
Screenshots shared by Fong show that she currently owns approximately $119,000 worth of crypto assets such as Bitcoin, Ether and polygon. Celsius was locked in after the company suspended withdrawals in mid-June 2022, before filing for Chapter 11 bankruptcy protection the next month.
Since then, she has been actively reporting on bankruptcy via YouTube and other social media platforms. Fong has repeatedly shared leaked inside information that she claims was privately given to her by disgruntled former Celsius employees. In a detailed statement of fees for the sixth month filed April 14 in Bankruptcy Court for the Southern District of New York by Kirkland & Ellis International, attorneys for Celsius, the law firm reported that it filed in a filing entitled "Tiffany Party Litigation .
The law firm began working on the case on Jan. 26 and last recorded work on Feb. 6. While no specific legal action has been drawn up, the filing shows Celsius' legal counsel specifically investigated the leaks reported by Fong through her social media accounts.
In the filing, Celsius’s law firm also outlined that it was drafting cease and desist letters and an enforcement motion for Fong, which typically requires courts to enforce requests for information related to a case. To give a few examples, Fong reported leaks of insider information related to the company’s bid for Celsius assets, purported audio of private company discussions, and alleged trading activity by executives such as former CEO and founder Alex Mashinsky.
