From the liquid staking site StakeHound, Celsius wants to recoup 40 million MATIC, 66,000 DOT, 25,000 staked native ETH, and 35,000 ETH.
A lawsuit was launched by Celsius Network, a defunct cryptocurrency lender, against StakeHound, a liquid staking platform, saying that StakeHound failed to deliver tokens worth $150 million that belonged to Celsius.
According to court records submitted by Celsius, the corporation has invested with StakeHound a total of $150 million in the form of deposits totaling 40 million Polygon, 66,000 Polkadot, 25,000 staked Ether (stETH), and 35,000 Ether.
In return for these tokens, Celsius received “stTokens,” which could be invested in other things or given back to StakeHound to get their initial cryptocurrency holdings. However, Celsius asserts that StakeHound demanded arbitration and stated that due to alleged breaches of duty by Celsius, it was under no obligation to swap the native ETH for the stTokens.
Section 362 of the United States Bankruptcy Code, which provides an automatic stop on creditors from taking legal action or collecting debt from a business or individual once they have filed for bankruptcy, is allegedly violated by StakeHound’s decision to initiate arbitration, according to Celsius.
In its petition, Celsius argues that StakeHound ought to be forced to give up its tokens right once and compensate it for any losses brought on by the purported violations of its contractual obligations.
Previously, in 2022, it was revealed that Celsius lost 35,000 ETH when StakeHound lost private keys, resulting in a loss of almost 38,000 ETH. Celsius claims that because of StakeHound’s carelessness, it is exempt from having to refund these assets.
The dispute between Celsius and StakeHound serves as a reminder of the difficulties and dangers involved in the custody and administration of digital assets within the cryptocurrency sector.
The conclusion of the action will establish StakeHound’s obligation to give Celsius the tokens back as the legal process progresses and, maybe, how to compensate Celsius for any monetary losses sustained as a result of the claimed breaches. In the crypto loan and staking industry, this case emphasizes the value of secure custody procedures and open communication regarding contractual commitments.