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Cryptoknowmics 2022-08-24 12:38:52

Celsius Files a Counterclaim Against KeyFi, Accuses Ex-Staff of Fraud

A former partner of the network and provider of staking software, KeyFi, filed a lawsuit against Celsius earlier this summer, accusing it of defrauding customers, mishandling their money, and breaching a contract. The court has not yet decided on this matter. However, in an amusing turn of events, KeyFi has been accused of utilizing Celsius money for unlawful business operations, outright theft, and “extreme negligence” by the failed cryptocurrency lender, who has replied with a lawsuit of its own. Alleged Gross Mismanagement The return complaint further asserts that in 2020, Jason Stone, the CEO of KeyFi, reportedly falsely described himself as a pioneer in coin staking and DeFi to acquire access to Celsius money. This allegedly marked the beginning of the two former parties’ business connection. However, the crypto lender claims that things rapidly turned worse. Allegations Of Outright Theft KeyFi allegedly stole millions of dollars worth of business assets and processed them through Tornado Cash to conceal future interactions with that money. KeyFi allegedly declined to disclose its business operations when questioned about how Celsius money was being utilized, exposing the company to unanticipated liabilities. The paper also shows that KeyFi appeared to have made an amicable commitment to Celsius, including the return of all funds and Celsius’s portion of the earnings. However, this promise didn’t happen. Illegal NFT Purch...

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