Celsius countersues KeyFi, claims deceit and incompetence led to tens of millions in losses
2022.08.24 23:06
Celsius countersues KeyFi, claims deceit and incompetence led to tens of millions in losses
Bankrupt crypto lending company Celsius countersued decentralized finance (DeFi) protocol KeyFi and its CEO Jason Stone on Tuesday in the United States Bankruptcy Court claiming Stone misrepresented himself as an expert in DeFi, and that Stone and KeyFi hadlost Celsius coins through incompetence and deceit. The suit came several weeks after KeyFi sued Celsius for allegedly failing to honor a profit-sharing agreement.
KeyFi provided Celsius with staking services and DeFi strategy. According to the Celsius suit, the defendants allegedly stole millions of dollars in coins from Celsius wallets. Further, Celsius alleges that the defendants bought nonfungible tokens (NFTs) with Celsius coins without Celsius’ authorization and then transferred them to their own wallets before selling some for “seven figure returns (which they pocketed).” The defendants also allegedly bought an interest in other crypto companies with Celsius coins and used Tornado Cash, the crypto privacy protocol recently banned by the U.S. Treasury Department, to hide their activities.
