Celsius sues stakehound to return $ 150 million to tokens and accuses violation of bankruptcy rules
Celsius sues stakehound to return $ 150 million to tokens and accuses violation of bankruptcy rules
Title: Celsius sues stakehound for return of $ 150 million to tokens
Subtitle: Crypto loan claims that stakehound has violated insolvency rules
The renowned crypto loan Celsius has filed a lawsuit against stakehound in which the company is accused of not having returned various tokens worth $ 150 million. Celsius had entrusted this token to the Liquid Staking platform for custody. In addition, Celsius claims that stakehound has violated the bankruptcy rules by initiating an arbitration against the company in Switzerland.
Celsius' lawsuit against stakehound includes claims for breaking the contract and "deliberate misconduct". Celsius calls on stakehound to return the property of the company, pay damages and to cover the legal fees.
The controversial tokens are supposed to include a total of $ 120 million on ether (ETH), $ 30 million of polygon (Matic) and $ 300,000 on Polkadot (DOT) tokens based on current prices.
stakehound had stopped his liquidity staking process in June 2021. In this process, tokens were pledged to the network to receive rewards in return. The assets were converted into so -called "demolished tokens", which represent the underlying of the assets.
During this time, stakehound customers were given “sttotsens” as a replacement that they could present to reclaim their tokens. However, Celsius claims that stakehound has refused to return the assets in exchange for the Sttotsens.stakehound gives the loss of the keys associated with 35,000 ETH tokens by Celsius, as the reason why they could not return the assets. The incident was made known in June 2021, with stakehound responsible for the alleged negligence.
In April of this year, stakehound submitted a lawsuit to a Swiss court and argued that it was "no obligation" to exchange Ethereum for the Stotsens issued by Celsius. Celsius lawyers believe that the initiation of this arbitration procedure violates section 362 of the US insolvency law. This provision, known as "automatic suspension", prevents creditors and other companies from collecting debts or taking legal action against an insolvent company.
Celsius was the largest customer of stakehound and allegedly made up more than 90 % of the tokens managed by the platform.
The blocked Ethereum of Celsius was held back due to the expected upgrade of the blockchain, which took place in April this year and created a large pool of released dismantled ETH. However, stakehound allegedly refused to confirm whether Celsius' assets were released after completing the upgrade.
Celsius hopes that the trial will have a positive outcome for you, with the return of your assets and the enabling of the insolvency proceedings. Stakehound will probably defend itself against the allegations and refer to the alleged key loss situation and the legal arguments. The crypto community will focus on the further development of this case.
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