key takeaways
- Celsius has sued KeyFi, arguing that DeFi strategy firm is responsible for causing Celsius to lose millions of dollars.
- According to Celsius, KeyFi was “unable to deploy coins profitably” and stole large sums of money from the crypto lender.
- KeyFi claims it was spoofed by Celsius, and not vice versa.
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Celsius accused KeyFi of theft and mismanagement of funds during their prior partnership.
“Several Tens of Millions” in Cryptocurrencies
Celsius is taking a jibe at his former partner.
Struggling crypto lending company filed Decentralized finance (DeFi) strategy firm KeyFi and its CEO Jason Stone filed suit today, claiming that KeyFi’s “inefficiencies, deceit and conversion” were responsible for causing Celsius to lose millions of dollars during their previous partnership. The suit comes a month after KeyFi Guilty Celsius of cheating it.
Celsius said in court documents that KeyFi stole tens of millions of dollars in cryptocurrency from Celsius Wallet, using Celsius funds to purchase hundreds of NFTs as well as “several blockchain-related companies” and through privacy software Tornado Cash. Laundered the stolen coins.
The crypto lender further claimed that, while Stone presented himself as a “pioneer” in DeFi tools at the outset of the two companies’ partnership, he proved himself “incapable of profitably deploying the coins”, leading to This resulted in “an additional loss of several tens of millions of dollars” for the firm.
A legal representative for Stone reacted Twitter followed suit, saying that “the compensation that Keefi received (in the form of NFTs) was explicitly authorized by Celsius CEO Alexander Mashinsky” and that the suit was “to rewrite history and help Keefi and Mr. was attempting to use a scapegoat for [Celsius’] organizational incompetence. ,
Once a leading crypto lending company, Celsius halted customer fund withdrawals on 13 June., citing “extreme market conditions”, and has since filed for bankruptcy. Recent reports claim Mashinsky allegedly used client funds to trade hundreds of millions of dollars worth of bitcoin, outnumbering 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 article owns ETH and several other cryptocurrencies.