Bankrupt crypto loan company Celsius countersued decentralized finance (DeFi) protocol KeyFi and it is Chief executive officer Jason Stone on Tuesday within the U . s . States Personal bankruptcy Court claiming Stone misrepresented themself being an expert in DeFi, which Stone and KeyFi hadlost Celsius coins through incompetence and deceit. The suit came several days after KeyFi sued Celsius for allegedly neglecting to recognition an income-discussing agreement.
KeyFi provided Celsius with staking services and DeFi strategy. Based on the Celsius suit, the defendants allegedly stole huge amount of money in coins from Celsius wallets. Further, Celsius alleges the defendants bought nonfungible tokens (NFTs) with Celsius coins without Celsius’ authorization after which transferred them to their personal wallets before selling some for “seven figure returns (that they pocketed).” The defendants also allegedly bought a desire for other crypto companies with Celsius coins and used Tornado Cash, the crypto privacy protocol lately banned through the U.S. Treasury Department, to cover their activities.
Related: US Trustee motions for examiner to probe Celsius’ ‘significant transparency issues’
Celsius KeyFi would be a co-complaintant within the suit. It had been a unique purpose vehicle of Celsius that KeyFi labored within. The plaintiffs claimed they’d lost “many millions of dollars” with the defendants’ gross negligence and perhaps millions of dollars from converted assets. Further, they claimed that KeyFi unsuccessful to come back funds when requested to do this making frivolous claims against Celsius and tweeted about this:
“As Stone clearly intended, the complaint and Twitter thread generated sensational media reports amplifying his false narrative.”
KeyFi sued Celsius on This summer 7 alleging that Celsius unsuccessful to recognition a “handshake agreement” to talk about profits after KeyFi’s staking and DeFi strategizing activities. KeyFi claimed the agreement was worth huge amount of money and Celsius operated like a Ponzi plan. Celsius had suspended withdrawals on June 13 and it was apparently insolvent when KeyFi sued it. Celsius declared personal bankruptcy not much later.
