Celsius Counter-Sues KeyFi for Tens of Millions

Fiverr
Celsius Counter-Sues KeyFi for Tens of Millions
Bybit


Key Takeaways

Celsius is hitting KeyFi with a lawsuit, arguing that the DeFi strategy firm is responsible for Celsius losing tens of millions of dollars.
According to Celsius, KeyFi was “incapable of deploying coins profitably” and stole large sums from the crypto lender.
KeyFi claims that it was defrauded by Celsius, not the other way around.

Share this article

Celsius is accusing KeyFi of stealing and mismanaging funds during their former partnership.

“Many Tens of Millions” in Cryptocurrencies

Celsius is counter-suing its former partner.

The struggling crypto lending company filed a lawsuit today against decentralized finance (DeFi) strategy firm KeyFi and its CEO Jason Stone, claiming that KeyFi’s “incompetence, deceit and conversion” was responsible for Celsius losing millions of dollars during their previous partnership. The suit comes a month after KeyFi accused Celsius of defrauding it.

coinbase

Celsius stated in court documents that KeyFi stole tens of millions of dollars in cryptocurrencies from Celsius wallets, used Celsius funds to buy hundreds of NFTs as well as “numerous blockchain-related companies,” and laundered the stolen coins through privacy software Tornado Cash. 

The crypto lender further claimed that, while Stone presented himself as a “pioneer” in DeFi instruments at the beginning of the two companies’ partnership, he proved himself “incapable of deploying coins profitably” which resulted in additional losses of “many tens of millions of dollars” for the firm. 

A legal representative for Stone responded to the lawsuit on Twitter by stating that “the compensation that KeyFi received (including in the form of NFTs) was expressly authorized by Celsius’s CEO Alexander Mashinsky” and that the suit was “an attempt to rewrite history and use KeyFi and Mr. Stone as a scapegoat for [Celsius’] organizational incompetence.”

Once a leading crypto lending company, Celsius paused customer fund withdrawals on June 13, citing “extreme market conditions,” and has since then filed for bankruptcy. Recent reports claim Mashinsky allegedly used customer funds to trade hundreds of millions of dollars worth of Bitcoin, overruling senior traders with decades of experience and suffering a $50 million trading loss in January 2022 alone.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.



Source link

NiceHash

Be the first to comment

Leave a Reply

Your email address will not be published.


*