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CDS Crypto News Celsius Sues StakeHound Over Unreturned $150M Worth of Tokens

Crypto News

Celsius Sues StakeHound Over Unreturned $150M Worth of Tokens

Celsius Sues StakeHound Over Unreturned $150M Worth of Tokens.The outcome of this dispute could have significant implications for both Celsius and StakeHound

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Celsius Sues Stakehound Over Unreturned $150M Worth Of Tokens.the Outcome Of This Dispute Could Have Significant Implications For Both Celsius And Stakehound

Crypto lending platform Celsius, currently in bankruptcy, has filed a lawsuit against liquid staking platform StakeHound. The lawsuit alleges that StakeHound has failed to return $150 million worth of various tokens, including ether (ETH), Polygon’s MATIC, and Polkadot’s DOT.

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Celsius Sues StakeHound Over Unreturned $150M Worth of Tokens

In 2021, Celsius entrusted StakeHound with 25,000 staked native ETH, 35,000 native ETH, 40 million MATIC, and 66,000 DOT. These tokens, valued at over $150 million, were exchanged for StakeHound’s liquid staking “stTokens“. However, StakeHound has allegedly failed to return these assets.

The Celsius-StakeHound Dispute

StakeHound has filed an arbitration agreement against Celsius in Switzerland following the lender’s bankruptcy. In this filing, StakeHound argues that it has “no obligation” to exchange the stTokens for other tokens. Furthermore, StakeHound claims to have lost the keys associated with 35,000 Celsius ETH, relieving it of its obligation to return these tokens.

Legal Implications and the Automatic Stay

Celsius argues that the filing of the arbitration is in violation of Section 362 of the United States Bankruptcy Code. This section, also known as the “automatic stay,” prevents most creditors from trying to collect debts or take legal action against a person or company as soon as they file for bankruptcy.

The Future of the Dispute

The outcome of this dispute could have significant implications for both Celsius and StakeHound. For Celsius, the return of these tokens could provide much-needed liquidity during its bankruptcy proceedings. For StakeHound, the lawsuit could result in significant financial and reputational damage.

About Celsius

Celsius is a cryptocurrency platform that allows users to earn interest on their crypto holdings, borrow against their crypto, and make payments. The platform supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, and many others. As of the latest data, the price of Celsius’s native token (CEL) is approximately $0.16. Despite facing bankruptcy and legal challenges, Celsius continues to operate and provide services to its users.