Bankrupt Celsius Files Counter Lawsuit Against Trading Firms for Allegedly Stealing Crypto Assets

Embattled crypto lending agency Celsius Community is suing its former enterprise associate and the funding agency’s co-founder for deceit, incompetence and unauthorized possession of property.

In a criticism filed with the Southern District of New York, Celsius claims that it sustained damage on account of KeyFi and CEO Jason Stone’s mismanagement and theft of Celsius cash.

The 2 firms beforehand inked an settlement for the Stone-led agency to handle Celsius purchasers’ funds.

Celsius alleges that Stone and his firm used stolen cash to purchase non-fungible tokens (NFTs) and purchase curiosity in different blockchain-related platforms.

“Defendants Stone and KeyFi, Stone’s majority-owned company car, proved themselves incapable of deploying cash profitably, and seem to have misplaced 1000’s of Celsius cash via their gross mismanagement. However the Defendants weren’t simply incompetent, additionally they have been thieves.

Amongst different issues, the Defendants stole hundreds of thousands of {dollars} in cash from Celsius “wallets” – blockchain addresses the place cash and different digital belongings will be saved – by transferring them to wallets that, upon data and perception, are managed by the Defendants.”

Celsius needs KeyFi to return the allegedly stolen property and to pay for damages, claiming that it suffered hefty monetary losses due to its former funding supervisor’s actions.

“Defendants’ legal responsibility to Celsius is staggering. The cash the Defendants apparently misplaced via their gross negligence alone are price many tens of hundreds of thousands of {dollars}, and the belongings that they transformed, and the proceeds of these belongings, could also be price tens of hundreds of thousands extra.

All have to be turned over to Celsius’ estates for the good thing about Celsius’ collectors.”

Celsius filed the costs after KeyFi initiates a lawsuit alleging that the troubled crypto lender did not honor its contractual obligation. It additionally accuses Celsius of operating a Ponzi scheme and utilizing buyer deposits to rig the value of its token.

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