Bankrupt crypto lender Celsius has filed a lawsuit in opposition to Stakehound for failing to repay $150 million price of digital belongings, together with Ethereum (ETH), Polkadot (DOT), and Polygon’s MATIC, which it entrusted to the staking platform in 2021, in accordance with a July 11 court docket submitting.
“StakeHound continues to wrongfully withhold or deprive Celsius of possession of all of those useful native tokens.”
Celsius alleged that StakeHound refused to return entrusted funds when it went bankrupt final yr, including that the staking platform had filed an arbitration settlement in opposition to it in Switzerland, saying it had no obligation to return. funds.
Celsius alleges that StakeHound misplaced the keys to 35,000 ETH.
In line with the court docket submitting, the staking platform claimed to have misplaced the keys to Celsius 35,000 ETH in 2021, which means it has no obligation to repay. On the time, StakeHound accused Fireblocks of dropping the keys and sued the guardian.
Celsius argued that the arbitration violated the US Chapter Code, the place Part 362 bars a creditor from bringing a lawsuit or amassing a debt in opposition to anybody who has filed for chapter.
The bankrupt firm needs the court docket to compel StakeHound to return the funds and pay damages for breach of contract.
“StakeHound ought to be required to return to Celsius the tokens in its precise or implied possession or in any other case present the native tokens in change for the stTokens, and to pay precise and exemplary damages, attorneys’ charges and curiosity earlier than and after judgment arising from its breaches of obligation and willful misconduct, and ought to be barred from pursuing arbitration in opposition to Celsius in violation of the automated keep.
StakeHound had but to file a protection to the allegations in opposition to him at press time.
Celsius’ chapter efforts
In the meantime, the lawsuit marks Celsius’ newest efforts to get well funds stranded on different platforms. Since submitting for chapter, the bankrupt lender has hatched plans to make its collectors complete.
Lately, the lender acquired court docket approval to liquidate its altcoins for Bitcoin (BTC) and ETH. Nevertheless, a report from Kaiko mentioned that the lender’s liquidation course of may put extra strain on the crypto market.
In line with Arkham Intelligence knowledgeCelsius presently holds $598.67 million in digital belongings, with its native CEL token accounting for roughly $100 million of that fund.
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