Celsius Launches Lawsuit to Recover $150M from StakeHound Staking Platform

Celsius Network Files Lawsuit Against StakeHound

Crypto lender Celsius Network has filed a lawsuit against liquid staking platform StakeHound, alleging that the company has failed to return $150 million worth of tokens owned by Celsius. The tokens include 40 million Polygon (MATIC), 66,000 Polkadot (DOT), 25,000 staked native Ether and 35,000 Ether (ETH).

In exchange for the tokens, Celsius received “stTokens” which they could deploy on other investments or return to StakeHound to get their crypto back. However, StakeHound allegedly demanded arbitration against Celsius and argued that it “has no obligation” to exchange native ETH for the stTokens.

According to Celsius, StakeHound’s arbitration filing violates section 362 of the United States Bankruptcy Code, otherwise known as the “automatic stay” rule. This rule prevents creditors from taking legal action or collecting debt from a company or person once they file for bankruptcy.

Celsius Network’s lawsuit against StakeHound is the latest development in the world of crypto, as jasmy crypto, crypto india, crypto today latest, crypto..com, and other flow crypto and etc crypto sites continue to make headlines.

Celsius Network and StakeHound Dispute

Celsius Network has filed a claim against StakeHound, demanding that the latter immediately turn over its property and compensate for any damages incurred due to its breaches of contractual duties. Cointelegraph contacted both Celsius Network and StakeHound, but neither responded.

In 2020, it was reported that Celsius lost 35,000 ETH when StakeHound lost the private keys to a total of 38,000 ETH. Celsius believes that it is no longer obligated to repay these assets.

In an effort to restructure, Celsius proposed a plan on Feb 15 which would create a public platform owned by Earn creators, sponsored by digital asset investment firm NovaWulf.