Celsius sues Stackhound over $150M token misplacement
Share this article
Bankrupt crypto lender Celsius has taken legal action against liquid staking platform StakeHound. The lawsuit focuses on StakeHound's failure to return $150 million worth of ETH, MATIC, DOT and other tokens.
“StakeHound continues to wrongly withhold or otherwise withhold all of these valuable Native Celsius [ETH] Tokens.
In legal documents filed with the US Bankruptcy Court for the Southern District of New York, Celsius said it entrusted StakeHound with 25,000 stock ETH, 35,000 native ETH, 40 million MATIC and 66,000 DOT in 2021. staking tokens or “stTokens” and were valued at over $150 million at the time of the exchange.
Following Celsius' bankruptcy announcement, the dispute escalated when StakeHound filed an arbitration agreement against Celsius in Switzerland. In its filing, StackHound asserts that it has no obligation to exchange stToken for other tokens. Additionally, StakeHound stated that it has lost 35,000 ETH keys belonging to Celsius and therefore cannot return these tokens.
“Since the keys associated with the 35,000 Celsius ETH (and rewards) were allegedly misplaced, not only is StakeHound obligated to return those tokens, but StakeHound is not obligated to fully refund the 25,000 Celsius ETH (including rewards). He said.
In response to Stackhound's counterclaim for arbitration, Celsius argued that it was in violation of Section 362 of the United States Bankruptcy Code. This special section is known as the “automatic stay,” which prevents many creditors from collecting debts or taking legal action against a party who files for bankruptcy:
“When faced with a breach of contractual and other obligations, StakeHound willfully breached the automatic stay. […] Stakehound has since ignored Celsius' request to have the Swiss arbitration lifted based on the automatic stay.
Share this article
The information contained or included in this website is obtained from independent sources that we believe to be accurate and reliable, but we make no representations or warranties as to the timeliness, completeness or accuracy of information obtained through this website. . Decentralized Media, Inc. Not an investment advisor. We do not provide personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may be out of date, or may be incomplete or incorrect. We may, but are not obligated to, update any outdated, incomplete or inaccurate information.
You should not make an investment decision in an ICO, IEO or other investment based on the information on this website and you should never interpret or rely on any information on this website as investment advice. If you are seeking investment advice on an ICO, IEO or other investment, we strongly recommend that you consult a licensed investment advisor or other qualified financial professional. We do not receive compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities or commodities.
See full terms and conditions.
