Celsius files lawsuits against DeFi contractor and crypto custodian Prime Trust

Celsius files lawsuits against DeFi contractor and crypto custodian Prime Trust

Celsius files lawsuits against DeFi contractor and crypto custodian Prime Trust

Celsius Network has filed a counterclaim against former KeyFi contractor and founder Jason Stone. The Block writes about this.

The crypto-lending platform has filed a complaint with the Bankruptcy Court for the Southern District of New York. She accused the defendant of transferring Celsius-owned coins worth “tens of millions of dollars” to KeyFi-controlled wallets. Stone used the Tornado Cash service to cover up his actions.

The statement says that Celsius loaned the coins to KeyFi for staking, but later demanded that they be returned. This succeeded for most of the assets, but left a “significant flaw,” the document emphasizes.

“Subsequently, it turned out that Stone’s repeated assurances that all coins owned by Celsius (as well as the “profit” platform owed) would be returned were false. He tried to cover up the fact that KeyFi either lost or stole the funds,” the statement reads.

The document also alleges that the defendant purchased “hundreds of NFTs” with Celsius money. This violated existing agreements. Stone and his company, in a lawsuit against Celsius, emphasized that non-fungible tokens were agreed with platform CEO Alex Mashinsky as compensation.

Six weeks ago, KeyFi accused Celsius of refusing to fulfill contractual obligations. Stone stressed that the defendant owes his organization a “significant amount of money.”

KeyFi worked with Celsius from August 2020 to April 2021. The company participated in staking on behalf of the lending platform and implemented DeFi-oriented investment strategies for it. 

On August 23, the platform also filed a lawsuit against Prime Trust demanding the return of ~$17 million, which the custodian allegedly did not return. The statement says that the partners terminated the agreement in June 2021, but the defendant refused to transfer 398 BTC, 196,268 CEL, 3,740 ETH and $2.2 million.

< p>“Following the case, [Celsius] was required by law to transfer all property belonging to the platform, including the mentioned cryptoassets,”, the document says.  

Recall that on June 13, Celsius Network suspended withdrawals, exchanges and transfers between accounts. A month later, on July 14, the platform and some of its subsidiaries filed for bankruptcy.

In the same month, the company submitted a business reorganization plan focused on the mining division.

According to the latest assessment , the “hole” in the balance of the Celsius Network amounted to $2.85 billion 

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