Get the scoop on finance - sign up for mobile alerts
Altcoins
| On
July 12, 2023

Celsius Alleges Liquid Staking Platform StakeHound Owes It $150,000,000 in New Lawsuit

By Mehron Rokhy

Bankrupt crypto lender Celsius is filing a lawsuit against a liquid staking platform, claiming that the firm owes it $150 million in crypto assets.

New court documents reveal that Celsius is suing StakeHound, alleging that it willfully failed to pay them $150 million worth of digital assets.

ADVERTISEMENT

In the lawsuit, Celsius is asking StakeHound to immediately return the virtual assets belonging to the broker, pay compensatory damages that arose from its breach of contract, and pay for associated legal fees.

According to Celsius, StakeHound would issue customers “stTokens” in exchange for the ability to control the validator nodes of their staked native tokens.

The stTokens could be deployed in other investments, which is not typical for staked assets, and then redeemed to StakeHound for the return of the customers’ native tokens plus any rewards earned.

However, Celsius alleges that StakeHound never returned the proper amount of native tokens during redemption and instead attempted to start an arbitration process with them.

ADVERTISEMENT

“StakeHound has failed and refused to return, or otherwise provide, to Celsius vast sums of native tokens in exchange for stTokens. When confronted with its breaches of contract and other duties, StakeHound willfully violated the automatic stay.

Despite its knowledge of the pendency of these bankruptcy cases, StakeHound commenced a (legally void) arbitration proceeding against Celsius seeking declaratory relief in Switzerland. StakeHound has since ignored Celsius’ demand that the Swiss arbitration be withdrawn based on the automatic stay.”

Celsius says it’s owed a “substantial” amount of crypto assets as well as rewards associated with them, including 25,000 Ethereum (ETH) staked in November 2020, 35,000 ETH staked in February 2021, and 40 million Polygon (MATIC) and 66,600 Polkadot (DOT) staked in April 2021.

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/eliahinsomnia