Celsius, a crypto lender that recently filed for bankruptcy, is suing liquid staking platform StakeHound for allegedly failing to return $150 million worth of Ether (ETH), Polygon’s MATIC, Polkadot’s DOT, and other tokens. According to court filings, Celsius had exchanged the tokens, valued at over $150 million, for StakeHound’s liquid staking stTokens earlier this year. StakeHound then filed an arbitration agreement against Celsius in Switzerland, claiming that it has no obligation to exchange the stTokens for other tokens and that it had lost the keys associated with 35,000 Celsius ETH. Celsius argues that this filing is in violation of Section 362 of the United States Bankruptcy Code, which is a rule that stops most creditors from trying to collect debts or take legal action against a person or company as soon as they file for bankruptcy. StakeHound has blamed Fireblocks for the loss, and launched a suit against the custody provider in 2021. Celsius maintains that StakeHound’s relationship with Fireblocks does not change its obligations to return the tokens owed.
Celsius Sues StakeHound Over Alleged Failure to Return $150 Million in Crypto
