StakeHound Faces Lawsuit from Celsius over $150 Million Token Dispute
Celsius, a bankrupt crypto lender, is taking legal action against StakeHound, a liquid staking platform, for allegedly failing to return tokens worth $150 million. The tokens in question include 55,000 ETH, 50 million MATIC, and 66,000 DOT. Celsius entrusted these assets to StakeHound in exchange for stTokens, but StakeHound claims it has no obligation to exchange them back. StakeHound also alleges that it lost the keys associated with 35,000 Celsius ETH. Celsius argues that StakeHound’s arbitration filing in Switzerland violates the United States Bankruptcy Code. StakeHound previously blamed custody provider Fireblocks for the token loss and initiated a lawsuit against them. Celsius maintains that StakeHound’s relationship with Fireblocks does not relieve it of its obligation to return the tokens.
Key Points:
- Celsius is suing StakeHound for allegedly failing to return tokens worth $150 million.
- StakeHound exchanged the tokens for stTokens and claims it has no obligation to exchange them back.
- StakeHound blames Fireblocks for the loss of the keys associated with 35,000 Celsius ETH.
- Celsius argues that StakeHound’s arbitration filing in Switzerland violates the United States Bankruptcy Code.
- Celsius maintains that StakeHound’s relationship with Fireblocks does not relieve it of its obligation to return the tokens.
Hot Take:
This legal battle between Celsius and StakeHound highlights the complexity and risks involved in the crypto lending industry. It serves as a reminder for users to carefully consider the platforms they entrust with their assets and the potential consequences of such arrangements. The outcome of this case will likely have implications for the broader crypto lending ecosystem, particularly in terms of accountability and the protection of users’ funds.
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