Celsius files lawsuit to recover $150M from staking platform StakeHound

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Bankrupt crypto lender Celsius Community has filed a lawsuit in opposition to liquid staking platform StakeHound after the corporate allegedly did not return $150 million price of tokens owned by Celsius. 

In keeping with a court docket doc filed by Celsius, the corporate positioned 40 million Polygon (MATIC), 66,000 Polkadot (DOT), 25,000 staked native Ether and 35,000 Ether (ETH). Celsius highlighted that these tokens are price a complete of $150 million.

In trade for the tokens, Celsius obtained “stTokens” which they may deploy on different investments or return to StakeHound to get their crypto again. Nonetheless, the latest submitting alleged that StakeHound demanded arbitration in opposition to Celsius and argued that it “has no obligation” to trade native ETH for the stTokens after it was confronted by its breaches of responsibility to Celsius.

Excerpt of the court docket submitting by Celsius Community. Supply: Stretto

In keeping with Celsius, StakeHound’s arbitration submitting violates part 362 of the US Chapter Code which is often known as the “computerized keep” rule. This can be a rule that disallows collectors from taking authorized motion in opposition to or gathering debt from an organization or particular person as quickly as they file for chapter.

As well as, Celsius additionally argued within the submitting that “StakeHound needs to be required to right away flip over Celsius’ property” and pay compensation for damages that arose from its breaches of contractual duties.

Cointelegraph reached out to Celsius Community and StakeHound for feedback however didn’t get a response.

Associated: CFTC investigators conclude ex-Celsius CEO Mashinsky broke US guidelines: Report

Final 12 months, it was reported that Celsius misplaced 35,000 ETH when StakeHound misplaced personal keys for a complete of round 38,000 ETH. The agency argues that it has been relieved of its obligation to pay again these belongings.

Since its chapter submitting nearly a 12 months in the past, Celsius has been making an attempt to make an effort to restructure. On Feb 15, Celsius offered a restructuring plan that pushes for the creation of a public platform owned by Earn creators which might be sponsored by digital asset funding agency NovaWulf. 

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