Celsius files lawsuit to recover $150M from staking platform StakeHound

Bankrupt crypto lender Celsius Network has filed a suit against liquid staking level StakeHound aft the institution allegedly failed to instrumentality $150 cardinal worthy of tokens owned by Celsius. 

According to a tribunal papers filed by Celsius, the institution placed 40 cardinal Polygon (MATIC), 66,000 Polkadot (DOT), 25,000 staked autochthonal Ether and 35,000 Ether (ETH). Celsius highlighted that these tokens are worthy a full of $150 million.

In speech for the tokens, Celsius received “stTokens” which they could deploy connected different investments oregon instrumentality to StakeHound to get their crypto back. However, the caller filing alleged that StakeHound demanded arbitration against Celsius and argued that it "has nary obligation" to speech autochthonal ETH for the stTokens aft it was confronted by its breaches of work to Celsius.

Excerpt of the tribunal filing by Celsius Network. Source: Stretto

According to Celsius, StakeHound’s arbitration filing violates conception 362 of the United States Bankruptcy Code which is besides known arsenic the "automatic stay" rule. This is simply a regularisation that disallows creditors from taking ineligible enactment against oregon collecting indebtedness from a institution oregon idiosyncratic arsenic soon arsenic they record for bankruptcy.

In addition, Celsius besides argued successful the filing that “StakeHound should beryllium required to instantly crook implicit Celsius’ property” and wage compensation for damages that arose from its breaches of contractual duties.

Cointelegraph reached retired to Celsius Network and StakeHound for comments but did not get a response.

Related: CFTC investigators reason ex-Celsius CEO Mashinsky broke US rules: Report

Last year, it was reported that Celsius mislaid 35,000 ETH erstwhile StakeHound mislaid backstage keys for a full of astir 38,000 ETH. The steadfast argues that it has been relieved of its work to wage backmost these assets.

[DB] Celsius Lost 35,000 ETH When Stakehound "Misplaced" Private Keys

Since its bankruptcy filing astir a twelvemonth ago, Celsius has been trying to marque an effort to restructure. On Feb 15, Celsius presented a restructuring plan that pushes for the instauration of a nationalist level owned by Earn creators which volition beryllium sponsored by integer plus concern steadfast NovaWulf. 

Collect this nonfiction arsenic an NFT to sphere this infinitesimal successful past and amusement your enactment for autarkic journalism successful the crypto space.

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