Celsius Sues StakeHound for Failing to Return $150 Million Worth of Crypto Assets
Celsius, a bankrupt crypto lender, has filed a lawsuit against StakeHound, a liquid staking platform based in Switzerland, for allegedly withholding $150 million worth of crypto assets. The assets include Ether (ETH), Polygon (MATIC), Polkadot (DOT), and other tokens.
Main Breakdowns:
- Celsius entrusted StakeHound with 40 million MATIC tokens and 66,000 DOT tokens for staking in April 2021.
- StakeHound is accused of wrongfully withholding or depriving Celsius of possession of these assets.
- StakeHound filed an arbitration agreement against Celsius in Switzerland, claiming it has “no obligation” to exchange the stTokens for other tokens.
- The commencement of arbitration violates the United States Bankruptcy Code, according to Celsius.
- Celsius believes StakeHound’s failure to return the ETH staked represents a breach of its duties, regardless of Fireblocks’ involvement.
Hot Take:
This lawsuit highlights the risks associated with entrusting crypto assets to third-party platforms. Celsius is seeking the return of its assets and compensation for damages. It remains to be seen how the court will rule on this case, but it serves as a reminder for investors to carefully consider the custody and security of their crypto holdings.