Bankrupt cryptocurrency lender Celsius is suing a liquid staking platform, claiming the company owes it $150 million in crypto assets.
New court documents to reveal that Celsius is suing StakeHound, alleging it willfully failed to pay them $150 million in digital assets.
In the lawsuit, Celsius is asking StakeHound to immediately return the broker’s virtual assets, pay damages arising from breach of contract, and pay associated legal fees.
According to Celsius, StakeHound would issue customers “stTokens” in exchange for the ability to check the validation nodes of their staked native tokens.
The stTokens can be staked in other investments, which is not typical of staked assets, and then exchanged to StakeHound for the return of the customer’s own tokens plus any rewards earned.
However, Celsius claims that StakeHound never returned the correct amount of native tokens during the redemption and instead tried to initiate an arbitration process with them.
“StakeHound has failed and has refused to return or otherwise provide huge sums of native tokens to Celsius in exchange for stTokens. When confronted with his breach of contract and other duties, StakeHound deliberately violated the automatic stay.
Despite StakeHound being aware of these bankruptcy cases being pending, StakeHound initiated (legally void) arbitration proceedings against Celsius to obtain a declaratory judgment in Switzerland. StakeHound has since ignored Celsius’ demand to withdraw the Swiss arbitration based on the automatic suspension.”
Celsius says it owes a “substantial” amount of crypto assets and associated rewards, including 25,000 Ethereum (ETH) wagered in November 2020, 35,000 ETH wagered in February 2021, and 40 million Polygon (MATIC) and 66,600 Polkadot (DOT). ) spawned in April 2021.
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