Celsius Network, a crypto lending platform, has filed a noteworthy lawsuit against popular liquidity staking platform StakeHound. Celsius Network accuses StakeHound of failing to return approximately $150 million worth of tokens. These tokens include popular cryptocurrencies like Ethereum (ETH), Polygon (MATIC), and Polkadot (DOT).
Case Details:
The recent court filing revealed that Celsius Network had delivered a significant amount of tokens to StakeHound in 2021. Celsius claims that it exchanged these tokens (worth over $150 million) with StakeHound's liquidity staking "stTokens."
Celsius demands StakeHound to return the tokens it holds or controls, either in their original form or along with the stTokens. Celsius also seeks compensation for damages resulting from StakeHound's alleged breaches of duty and intentional misconduct. These claims include actual damages, exemplary damages, legal expenses, and interest. $ETH $DOT $MATIC
Additionally, Celsius requests an injunction to prevent StakeHound from pursuing arbitration during the bankruptcy process. This request indicates that Celsius Network believes StakeHound has acted in violation of rules and legal norms while engaging in arbitration proceedings during the bankruptcy process.
StakeHound's Arbitration Application:
Meanwhile, it is alleged that StakeHound has filed an arbitration application against Celsius in Switzerland following its bankruptcy filing. In the Swiss application, StakeHound defends itself against the lawsuit brought by Celsius, claiming that it has no obligation to exchange the stTokens for other tokens. #StakeHound's
StakeHound argues that it lost the keys for 35,000 Celsius ETH and is not obligated to recover these tokens. StakeHound claims that the responsibility for the key incident lies with a security service called Fireblocks. StakeHound's refusal to provide Celsius with the staked ETH is considered a clear breach of duty.
Outcome and Key Decisions:
As the case progresses, the court will have to determine the validity of Celsius' claims and whether StakeHound should be held responsible for the alleged breaches of duty and intentional misconduct. The court's decision could set a precedent for similar disputes in the crypto industry and have significant implications for both parties involved. #ETH #polygon #polkadot
In Summary:
Celsius Network's lawsuit against StakeHound has garnered significant attention in the world of cryptocurrencies. Celsius aims to recover the tokens that StakeHound has failed to return and fulfill its compensation claims. StakeHound, on the other hand, rejects Celsius' demands and presents its defense through the arbitration application. This complex case will be resolved through the legal process and could serve as an example for similar incidents in the crypto industry. #celsius