Tuesday’s countersuit comes about seven weeks after the DeFi startup accused Celsius of failing to honor a profit-sharing agreement in a July 7 lawsuit. “Stone and KeyFi laundered millions of dollars of Celsius property (or its proceeds) through Tornado Cash on dozens of occasions,” it said. Stone and KeyFi stole “many tens of millions of dollars from Celsius wallets, misappropriated cryptoassets to buy and steal non-fungible tokens (NFTs) and pocketed seven-figure returns,” the firm said.Ĭourt documents claim Stone managed Celsius’ cryptoasset investments from August 2020 to March 2021.Ĭelsius also accused the parties of using recently-sanctioned crypto mixer Tornado Cash to disguise their tracks.
![pro fit stone pro fit stone](https://www.allthingsstone.com/ca-en/wp-content/uploads/2017/08/Cultured-Stone-by-Boral-Pro-Fit%C2%AE-Modera-Ledgestone-Intaglio-1.jpg)
“The defendants were not just incompetent, they also were thieves,” Celsius said in its suit. Celsius claims Stone was incapable and lost its digital assets through “gross mismanagement.” In the complaint filed Tuesday in Manhattan, Celsius alleges Stone falsely depicted himself as a pioneer and expert in crypto staking and DeFi investments. Now, the bankrupt crypto lender is countersuing, claiming that KeyFi CEO Jason Stone stole millions of dollars in cryptocurrencies. Stone’s lawyer said Celsius’ lawsuit is an attempt to rewrite history and mask its own incompetenceĭecentralized finance (DeFi) startup KeyFi last month sued its business partner Celsius over allegations of running a Ponzi scheme.Celsius claims KeyFi and Stone used recently-sanctioned crypto mixer Tornado Cash to cover their tracks.The Wall Street Journal soon reported the analytics firm Nansen’s findings that Celsius was involved in the crisis, despite a denial. The same month, two leading digital tokens, viz. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.ĭuring the crypto crash in May, Celsius was reported to have witnessed a 50% decline in the value of its assets.
#Pro fit stone code#
Chapter 11 of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. It was in July this year that Celsius filed for Chapter 11 Protection in the U.S, leaving its 1.7 million users in a panic. “The entire company’s portfolio had naked exposure to the market.” Unending battles He also added that while Celsius informed that it would hedge any potential impermanent loss from the joint operations in liquidity pools, it did not do so. Stone also claimed on Twitter that Celsius took new loans with high interest rates to repay former depositors and creditors, acting like a Ponzi scheme. Both the groups worked together during August 2020- March 2021. It was only in early July that KeyFi sued Celsius for allegedly not honouring a profit-sharing agreement and failing to pay KeyFi millions of dollars.Ī MoU was signed by KeyFi and Celsius, requiring KeyFi to operate as Celsius KeyFi, a Celsius-owned subsidiary.
![pro fit stone pro fit stone](http://www.allthingsstone.com/ca-en/wp-content/uploads/2018/01/CS-Pro-Fit-Alpine-Ledgestone-Black-Mountain-Carls-Jr-2.jpg)
In late March 2021, Stone replied that the KeyFi team would ensure the “complete return of all Celsius tokens (principal + interest earned) managed by KeyFi by the end of April at the latest.” KeyFi’s allegations against Celsius When Celsius found out that KeyFi had been using Celsius coins for other purposes, it asked Stone to return the coins.
![pro fit stone pro fit stone](https://www.allthingsstone.com/ca-en/wp-content/uploads/2017/08/Cultured-Stone-Pro-Fit-Alpine-Ledgestone-Pheasant-1024x645.jpg)
The suit also claims that in August 2020, Celsius and Stone agreed that Celsius would set up a wholly-owned subsidiary to acquire KeyFi assets and operate Celsius’s staking and DeFi activities with Stone as the CEO of that subsidiary. Department of the Treasury due to its use in multiple money laundering cases.Ĭelsius has demanded that KeyFi should be made to pay punitive damages for its criminal misconduct. Tornado Cash was recently blacklisted by the U.S. It has also sold some of these assets for seven-figure returns, the lawsuit alleges.Ĭelsius also alleges in its lawsuit that Stone and KeyFi relied on the cryptocurrency mixer, Tornado Cash. Stone and KeyFi laundered millions of dollars of Celsius property on multiple occasions using the same, it added. Celsius also alleges that KeyFi used these stolen coins to buy hundreds of NFTs and transferred them to its wallets. However, KeyFi allegedly lost coins from Celsius wallets worth millions of dollars due to mismanagement and deceit. Mismanagement and deceit?Ĭelsius claims that KeyFi CEO Jason Stone falsely represented himself as a pioneer and expert in coin staking and decentralized finance investments. It is claiming that KeyFi lost CEL worth millions of dollars through incompetence and deceit.Ĭelsius’s suit comes on the heels of KeyFi suing Celsius a few weeks back for allegedly failing to honour a profit-sharing agreement. Celsius, the New Jersey-based bankrupt cryptocurrency lending company, has countersued decentralized DeFi aggregator KeyFi and its CEO Jason Stone.