Celsius

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As per the <a href="https://www.coindesk.com/policy/2023/07/12/celsius-sues-stakehound-for-failing-to-return-150m-worth-of-tokens/" rel="noopener noreferrer nofollow">reports</a>, bankrupt crypto lender Celsius Network has brought a legal complaint targeting the liquid staking platform StakeHound for allegedly failing to repay $150 million in ether (ETH), Polygon (MATIC), Polkadot (DOT), and other tokens.
<h2 id="span-style-font-weight-400-celsius-and-stakehound-s-initial-agreement-span">Celsius and StakeHound’s Initial Agreement</h2>
In accordance with a court filing submitted by Celsius, the company gave StakeHound the ability to access 25,000 native ETH stakes, 35,000 native ETH, 40 million MATIC, and 66,000 DOT in 2021.&nbsp;
The tokens, worth more than $150 million, have been traded for StakeHound’s liquid stakes called “stTokens,” according to legal documents. Celsius received “stTokens” in return for the tokens, which they could use to make new investments or give back to StakeHound in order to get their cryptocurrency.&nbsp;
<h3 id="span-style-font-weight-400-stakehound-refused-to-provide-access-to-funds-span">StakeHound Refused to Provide Access to Funds</h3>
However, according to the most recent filing, StakeHound requested litigation over Celsius and claimed that it “has no obligation” to swap native ETH for stTokens after being faced by its violations of duty to the crypto lending platform.
<h2 id="span-style-font-weight-400-stakehound-needs-to-pay-up-span">StakeHound Needs to Pay Up</h2>
Celsius asserts that StakeHound’s arbitration filing disregards the automatic stay rule which prohibits creditors from suing or retrieving debt from a firm or individual shortly after they apply for bankruptcy.&nbsp;
The bankrupt crypto lender additionally stated in the legal action that “StakeHound should be required to immediately turn over Celsius’ property” and compensate the damage for disrespect of its obligations under the contract.
<h3 id="span-style-font-weight-400-celsius-bankruptcy-proceedings-are-in-full-effect-span">Celsius Bankruptcy Proceedings are in Full Effect</h3>
After a month of halting withdrawals due to liquidity concerns, Celsius Network filed for <a href="https://thecoinrise.com/celsius-files-for-chapter-11-bankruptcy-amid-insolvency-woes/" rel="noopener noreferrer nofollow">Chapter 11 bankruptcy</a> in New York. In light of such issues, the <a href="https://thecoinrise.com/celsius-network-hires-restructuring-lawyers-after-freezing-accounts/" rel="noopener noreferrer nofollow">corporation chose to work</a> on a variety of <a href="https://thecoinrise.com/celsius-creditors-committee-investigates-asset-recovery-alternatives/" rel="noopener noreferrer nofollow">strategies for recovering</a> investors’ assets, which appears to have worked out this year, as a previous report said that consumers of the collapsed company would <a href="https://thecoinrise.com/celsius-customers-can-withdraw-72-5-of-their-holdings/" rel="noopener noreferrer nofollow">receive up to 72.5%</a> of their cryptocurrency deposits back.&nbsp;
Furthermore, the bankruptcy <a href="https://thecoinrise.com/celsius-permitted-to-convert-altcoins-to-btc-eth-from-july-1/" rel="noopener noreferrer nofollow">court has approved Celsius</a> Network’s effort to convert all cryptocurrency-held assets to Bitcoin and Ethereum. 
The post <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com/celsius-sues-stakehound-seeks-to-recover-150m-worth-of-crypto/">Celsius Sues StakeHound, Seeks to Recover $150M Worth of Crypto</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Celsius Sues StakeHound, Seeks to Recover $150M Worth of Crypto

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