1 year ago
Bankrupt crypto lender Celsius has commenced ineligible enactment against Stakehound for failing to wage backmost $150 cardinal successful integer assets, including staked Ethereum (ETH), Polkadot (DOT), and Polygon’s MATIC, which it entrusted to the staking level successful 2021, according to a July 11 tribunal filing.
“StakeHound continues to wrongfully withhold oregon different deprive Celsius of possession of each of these invaluable Native Tokens.’
Celsius alleged that StakeHound refused to instrumentality the entrusted funds erstwhile it went bankrupt past year, adding that the staking level filed an arbitration statement against it successful Switzerland, saying it had nary work to instrumentality the fund.
Celsius alleges StakeHound mislaid keys to 35k ETH.
According to the tribunal filing, the staking level claimed it mislaid the keys to Celsius 35,000 ETH successful 2021, which means it has nary work to repay. At the time, StakeHound blamed Fireblocks for losing the keys and sued the custodian.
Celsius argued that the arbitration violates U.S. Bankruptcy Code, wherever conception 362 prevents a creditor from taking immoderate ineligible enactment oregon collecting indebtedness against anyone that filed for bankruptcy.
The bankrupt steadfast wants the tribunal to compel StakeHound to instrumentality the funds and wage damages for breach of contract.
“StakeHound should beryllium required to crook implicit to Celsius the tokens successful its existent oregon constructive possession oregon different supply the Native Tokens successful speech of the stTokens, and wage existent and exemplary damages, attorneys’ fees, and pre- and post-judgment involvement arising from its breaches of work and willful misconduct, and should beryllium enjoined from continuing to prosecute arbitration against Celsius successful usurpation of the automatic stay.”
StakeHound had yet to record a defence for the allegations against it arsenic of property time.
Celsius’s bankruptcy efforts
Meanwhile, the suit marks Celsius’s latest efforts to retrieve immoderate funds stuck crossed different platforms. Since filing for bankruptcy, the bankrupt lender has devised plans to marque its creditors whole.
Recently, the lender got the court’s approval to liquidate its altcoins for Bitcoin (BTC) and ETH. However, a Kaiko study stated that the lender’s liquidation process mightiness exert much unit connected the crypto market.
According to Arkham Intelligence data, Celsius presently holds $598.67 cardinal successful integer assets, with its CEL autochthonal token accounting for astir $100 cardinal of this fund.
The station Celsius files suit to retrieve $150M crypto assets from StakeHound appeared archetypal connected CryptoSlate.
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