Celsius accuses KeyFi and its head of stealing millions of dollars from the platform

The bankrupt crypto lender claimed that the company withdrew a significant amount in native tokens CEL from its wallet during the collaboration

24.08.2022 - 11:00

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2 min

What’s new? The bankrupt crypto lender Celsius has filed a countersuit against its former partner, staking software and investment firm KeyFi Inc. The charge says KeyFi and, in particular, its CEO Jason Stone lost millions of dollars in native tokens CEL “incompetence and deceit,” Cointelegraph reports. A few weeks ago, KeyFi accused Celsius of running a Ponzi scheme and refusing to pay interest on the profits generated during the collaboration.

Cointelegraph’s material

More details about the charges. According to Celsius’ lawsuit, the defendants allegedly stole millions of dollars worth of CEL tokens (the exact sum is not specified) from the lender’s wallets. In addition, Celsius alleges that the defendants bought non-fungible tokens (NFTs) with these assets without the lender’s approval and then transferred them to their own wallets. According to the prosecution, KeyFi representatives received “seven figure returns (which they pocketed).”

The defendants also allegedly bought an interest in other crypto companies with Celsius assets, while using the recently banned by the US authorities transaction mixing service Tornado Cash to hide their activities.

Earlier, Celsius’ creditor committee launched an investigation into the company’s head Alex Mashinsky and the platform’s insiders. The group intends to uncover potential misconduct.

To find out what caused the bankruptcy of Celsius, one of the largest crypto lenders, see GetBlock Magazine’s feature.

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