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Celsius accuses KeyFi of stealing crypto

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According to Celsius, they have filed a counter-complaint against defendants Jason Stone and his business KeyFi due to incompetence, deception, and conversion. It seeks to require the defendants to turn over valuable assets stolen from them and pay damages and restitution for the substantial injuries the defendants have caused through their blatant breaches of duty.

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Defendants are thieves

The lender, Celsius, continued by stating that Stone's majority-owned corporate vehicle could not effectively deploy coins and appeared to have lost thousands of their coins due to terrible mismanagement. Furthermore, the defendants were not just inept but also thieves.

Celsius said that the defendants stole millions of dollars in cryptocurrencies from their wallets and blockchain addresses by moving them to wallets owned by the defendants, based on information and belief.

The company additionally says that Stone and his company used its coins to purchase hundreds" of non-fungible tokens (NFTs) and then stole the NFTs they obtained with Celsius' coins by transferring them to wallets that they own or control.

Ponzi scheme

Celsius' lawsuit follows Stone's original critique. Stone referred to the company as a Ponzi scheme in the complaint filed in early July. He stated that the company manipulated the price of its native coin CEL with customer monies. Stone further said that it lost a significant amount of money because it failed to hedge against the risks posed by its activities.

According to Stone's complaint, the coin price swings have utterly disrupted them and damaged its capacity to pay its depositors.

The company only accepted deposits in Bitcoin and Ether, the two cryptocurrencies with the largest market capitalisation, implying that when the values of these two coins rose faster than the prices of other tokens, the corporation found itself owing more to its clients. This occurred because the firm included other currencies in its customer reward mechanism.

Stone reportedly claimed the crypto lender owed him millions of dollars in compensation.

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Author: Emmanuel Baiden

Author: Emmanuel Baiden

7 years experience within the financial services sector most notably in Sales, Trading, research and writing articles within the crypto space. I have a bachelor's degree in International Business and a Master's in Investment and Risk Finance . I am also an associate member of the Chartered Institute for Securities and Investment.

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