KeyFi Founders File Lawsuit Against Celsius, Alleging Celsius Owes Asset Management Fees

Jul 08,2022
KingData News: Jason Stone, founder and CEO of investment firm KeyFi, tweeted that the company had filed a formal lawsuit against Celsius in New York State Supreme Court on July 7. Jason Stone said pursuant to the contracts Celsius signed with KeyFi, they owe KeyFi a significant sum of money. In 2020 Celsius partially acquired KeyFi's assets and team, and KeyFi began managing Celsius customer deposits, Jason Stone said. But Celsius didn't hedge KeyFi's strategy as promised. KeyFi thereafter terminated its relationship with Celsius and closed out the DeFi position, but in the process incurred an uncharacteristic loss that Celsius attributed to KeyFi's mismanagement. Jason Stone said he had previously been working privately with Celsius to resolve the dispute, but filed a lawsuit against Celsius because it was indebted to KeyFi and shifted the blame for the losses to KeyFi.
On June 13, digital asset lending platform Celsius Network announced that it would suspend all withdrawals, swaps and transfers between accounts due to extreme market conditions. On the same day, Etherscan data showed that Celsius transferred a total of approximately 111,815 ETH to FTX over the last three days. This indicator provides a real-time tracking of Celsius' funding crisis.