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Bankrupt crypto lender Celsius is submitting a lawsuit in opposition to a liquid staking platform, claiming that the agency owes it $150 million in crypto property.
New courtroom paperwork reveal that Celsius is suing StakeHound, alleging that it willfully didn’t pay them $150 million value of digital property.
Within the lawsuit, Celsius is asking StakeHound to instantly return the digital property belonging to the dealer, pay compensatory damages that arose from its breach of contract, and pay for related authorized charges.
In response to Celsius, StakeHound would situation clients “stTokens” in change for the flexibility to manage the validator nodes of their staked native tokens.
The stTokens could possibly be deployed in different investments, which isn’t typical for staked property, after which redeemed to StakeHound for the return of the shoppers’ native tokens plus any rewards earned.
Nonetheless, Celsius alleges that StakeHound by no means returned the right quantity of native tokens throughout redemption and as a substitute tried to start out an arbitration course of with them.
“StakeHound has failed and refused to return, or in any other case present, to Celsius huge sums of native tokens in change for stTokens. When confronted with its breaches of contract and different duties, StakeHound willfully violated the automated keep.
Regardless of its data of the pendency of those chapter instances, StakeHound commenced a (legally void) arbitration continuing in opposition to Celsius in search of declaratory reduction in Switzerland. StakeHound has since ignored Celsius’ demand that the Swiss arbitration be withdrawn primarily based on the automated keep.”
Celsius says it’s owed a “substantial” quantity of crypto property in addition to rewards related to them, together with 25,000 Ethereum (ETH) staked in November 2020, 35,000 ETH staked in February 2021, and 40 million Polygon (MATIC) and 66,600 Polkadot (DOT) staked in April 2021.
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