Bankrupt crypto lender Celsius Community has filed a lawsuit in opposition to liquid staking platform StakeHound after the corporate allegedly didn’t return $150 million value of tokens owned by Celsius.
In keeping with a court docket doc filed by Celsius, the corporate positioned 40 million Polygon (MATIC), 66,000 Polkadot (DOT), 25,000 staked native Ether and 35,000 Ether (ETH). Celsius highlighted that these tokens are value a complete of $150 million.
In alternate for the tokens, Celsius obtained “stTokens” which they might deploy on different investments or return to StakeHound to get their crypto again. Nevertheless, the current submitting alleged that StakeHound demanded arbitration in opposition to Celsius and argued that it “has no obligation” to alternate native ETH for the stTokens after it was confronted by its breaches of obligation to Celsius.
In keeping with Celsius, StakeHound’s arbitration submitting violates part 362 of the USA Chapter Code which is often known as the “automated keep” rule. It is a rule that disallows collectors from taking authorized motion in opposition to or accumulating debt from an organization or individual as quickly as they file for chapter.
As well as, Celsius additionally argued within the submitting that “StakeHound must be required to right away flip over Celsius’ property” and pay compensation for damages that arose from its breaches of contractual duties.
Cointelegraph reached out to Celsius Community and StakeHound for feedback however didn’t get a response.
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Final 12 months, it was reported that Celsius misplaced 35,000 ETH when StakeHound misplaced non-public keys for a complete of round 38,000 ETH. The agency argues that it has been relieved of its obligation to pay again these property.
[DB] Celsius Misplaced 35,000 ETH When Stakehound “Misplaced” Personal Keys
— db (@tier10k) July 14, 2022
Since its bankruptcy filing almost a year ago, Celsius has been making an attempt to make an effort to restructure. On Feb 15, Celsius presented a restructuring plan that pushes for the creation of a public platform owned by Earn creators which shall be sponsored by digital asset funding agency NovaWulf.
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