{"id":66209,"date":"2022-08-24T09:46:21","date_gmt":"2022-08-24T06:46:21","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=66209"},"modified":"2025-09-07T00:09:32","modified_gmt":"2025-09-06T21:09:32","slug":"celsius-files-lawsuits-against-defi-contractor-keyfi-and-crypto-custodian-prime-trust","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/celsius-files-lawsuits-against-defi-contractor-keyfi-and-crypto-custodian-prime-trust\/","title":{"rendered":"Celsius files lawsuits against DeFi contractor KeyFi and crypto custodian Prime Trust"},"content":{"rendered":"

Celsius Network has filed a counterclaim against former contractor KeyFi and its founder Jason Stone. The Block<\/a> reports.<\/p>\n

The crypto lending platform filed a complaint with the United States Bankruptcy Court for the Southern District of New York. It accused the defendant of transferring Celsius-owned coins worth \u201ctens of millions of dollars\u201d to wallets controlled by KeyFi. To conceal his actions, Stone used the Tornado Cash service.<\/p>\n

The filing states that Celsius lent coins to KeyFi for staking, but later demanded their return. This was successful for most assets, but a \u201csubstantial shortfall\u201d remained, the document notes.<\/p>\n

\n

\u201cSubsequent statements by Stone that all Celsius coins (as well as the platform\u2019s \u2018profits\u2019 due) would be returned turned out to be false. He attempted to conceal the fact that KeyFi had either lost or stolen the funds,\u201d<\/em> the filing states.<\/p>\n<\/blockquote>\n

The document also claims that the defendant purchased \u201chundreds of NFTs\u201d with Celsius funds. This violated existing agreements. Stone and the company he heads in the Celsius suit<\/a> stressed that non-fungible tokens as compensation had been agreed with the platform\u2019s CEO, Alex Mashinsky.<\/p>\n

Six weeks ago, KeyFi accused Celsius of breach of contract. Stone stressed that the defendant owes his organization \u201ca substantial amount of money.\u201d<\/p>\n

KeyFi worked with Celsius<\/a> from August 2020 to April 2021. The company participated in staking on behalf of the lending platform and implemented DeFi-focused investment strategies for it.<\/p>\n

On August 23, the platform also filed suit<\/a> against Prime Trust seeking the return of about $17 million, which the custodian allegedly did not return. The statement says that the partners terminated the agreement in June 2021, but the defendant refused to transfer 398 BTC, 196,268 CEL, 3,740 ETH and $2.2 million.<\/p>\n

\n

\u201cAfter reviewing the case [Celsius] under the law, Prime Trust was supposed to transfer all property belonging to the platform, including the aforementioned crypto assets,\u201d<\/em> the document states.<\/p>\n<\/blockquote>\n

In June, Celsius Network suspended withdrawals, exchanges and transfers between accounts. A month later, on July 14, the platform and some of its \u201csubsidiaries\u201d filed for bankruptcy.<\/p>\n

In the same month, the company presented a plan to reorganize the business<\/a>, focused on the mining division.<\/p>\n

According to the latest assessment, the \u201chole\u201d in Celsius Network\u2019s balance sheet stood at $2.85 billion. <\/p>\n

Read ForkLog’s bitcoin news in our Telegram<\/a> \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"

Celsius Network has filed a counterclaim against former contractor KeyFi and its founder Jason Stone. The Block reports.<\/p>\n","protected":false},"author":1,"featured_media":66210,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1348,1162,2226],"class_list":["post-66209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-celsius-network","tag-court-cases","tag-prime-trust"],"aioseo_notices":[],"amp_enabled":true,"views":"26","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/66209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=66209"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/66209\/revisions"}],"predecessor-version":[{"id":66211,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/66209\/revisions\/66211"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/66210"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=66209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=66209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=66209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}