Monday, December 5, 2022
HomeLaw & PoliticsCelsius files complaint against KeyFi founder for stealing cryptocurrency worth of million...

Celsius files complaint against KeyFi founder for stealing cryptocurrency worth of million dollars

In a lawsuit, Celsius accused a staking company called KeyFi and its founder of stealing, losing, and laundering many millions of dollars’ worth of cryptocurrency.

Earlier today, the financially troubled lender filed a complaint in the United States Bankruptcy Court for the Southern District of New York demanding restitution of property and damages. The complaint alleges that KeyFi and founder Jason Stone stole millions of dollars’ worth of coins from Celsius wallets and transferred them to wallets controlled by the defendants. According to Celsius, Stone and KeyFi cleaned up their assets by using the newly sanctioned cryptocurrency Tornado Cash.

This lawsuit was filed six weeks after Stone filed a lawsuit against Celsius in which it accused the company of poor management and fraud and said that it was entitled to money based on hundreds of millions of dollars in revenues. In 2020, Celsius completed the acquisition of a part of KeyFi.

The tremendous market volatility that occurred last month led to liquidity concerns, which in turn forced Celsius to cease withdrawals and begin the bankruptcy process. Celsius has now applied for protection under Chapter 11 of the bankruptcy code.

Stone was allegedly using the mix Tornado Cash to cover up his actions, according to Celsius. The business claims that in late September, months after Stone had left the company, he moved $1.4 million from a Celsius wallet to accounts he controlled using Tornado Cash. The money came from a Celsius wallet.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.


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