Celsius accused staking firm KeyFi and its founder of theft.
Celsius accused KeyFi and its founder of stealing and laundering millions of dollars in cryptocurrencies.
Celsius Targets KeyFi
Embattled crypto lending platform Celsius Network has filed an application with the US Southern District of New York Bankruptcy Court, claiming that KeyFi and its founder Jason Stone stole millions of dollars from Celsius wallets and transferred them to wallets controlled by the defendants. The company filed a complaint for reimbursement of its damage. The company also stated that KeyFi uses Tornado Cash to launder these funds.
Celsius’ move comes six months after Stone sued Celsius. Stone accused the company of mismanagement and fraud. Celsius bought a portion of KeyFi in 2020.
Celsius filed for Chapter 11 bankruptcy after halting withdrawals due to liquidity problems following the market crash.
Celsius said he had compromised his KeyFi monies for the stock in the first place and then asked for it back. Although most of the cryptocurrencies were withdrawn following Celsius’s official request, it was emphasized that there was a “significant gap”.
The company highlighted that KeyFi and Stone violated the agreement by purchasing hundreds of NFTs with Celsius’ assets.
Celsius also suggested that Stone used Tornado Cash to hide his activities. Stone allegedly transferred $1.4 million in crypto using Tornado Cash.
