Crypto Lender Celsius Suing StakeHound for $150M in Crypto Assets

• Celsius, a bankrupt crypto lender, is filing a lawsuit against liquid staking platform StakeHound, claiming that the firm owes it $150 million in crypto assets.
• The lawsuit alleges that StakeHound breached its contract and failed to return the proper amount of native tokens during redemption.
• Celsius is asking for the return of the virtual assets belonging to them as well as compensatory damages and legal fees.

Celsius Alleges Liquid Staking Platform StakeHound Owes It $150 Million

Celsius, a bankrupt crypto lender, has filed a lawsuit against liquid staking platform StakeHound alleging that it owes them $150 million in crypto assets. According to court documents, Celsius is requesting the immediate return of their virtual assets plus associated rewards that arose from breach of contract along with associated legal fees.

Details Of The Lawsuit

According to the lawsuit, StakeHound would issue customers “stTokens” in exchange for control of validator nodes of their staked native tokens. These stTokens could then be used for other investments and redeemed back to StakeHound for return of customers’ native tokens plus any rewards earned. However, Celsius alleges that when they attempted to redeem these tokens back from StakeHound they received an incorrect amount which led them to file this lawsuit.

Celsius’ Demands From The Lawsuit

Celsius is demanding not only the immediate return of all virtual assets belonging to them but also compensatory damages arising from breach of contract and payment for related legal fees incurred by them due to this dispute. They are also alleging that despite being aware of their bankruptcy case, Stakehound still started an arbitration process with them which was legally void according to laws set out by automatic stay regulations.

Assets Owed To Celsius

The digital assets owed by Stakehound include 25,000 Ethereum (ETH) staked in November 2020, 35,000 ETH staked in February 2021 as well as 40 million Polygon (MATIC) and 66,600 Polkadot (DOT) staked in April 2021 – all totaling up at around $150 million worth of crypto assets plus rewards earned on those investments over time by Celsius customers.

Final Thoughts

This new development comes amidst ongoing financial strain faced by many businesses due to changing economic conditions brought about by Covid-19 pandemic and will likely have far reaching consequences on how companies operate going forward if it sets a precedent for similar cases like this one.