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The crypto company has filed a counterclaim against KeyFi’s investment manager, accusing him of misappropriating assets and laundering them through Tornado Cash.
Crypto company Celsius Network LLC has sued former investment manager Jason Stone and his company KeyFi Inc, accusing them of negligence, inept investment and loss or theft of assets worth tens of millions of dollars, Reuters reports.
Celsius’s lawsuit has become a counterclaim: in early July, the investment firm KeyFi Inc., engaged in the development of DeFi software, sued Celsius, accusing it of fraud and failure to fulfill the agreement on the division of profits “worth millions of dollars”
Celsius’s lawsuit alleges that Stone, who worked with the crypto company for 7 months in 2020-2021, misappropriated assets to buy hundreds of NFTs he kept out of reach and hid their tracks using the Tornado Cash crypto mixer.
Stone’s lawyer Kyle Roche told the publication that KeyFi’s compensation in the form of NFT was sanctioned by Celsius director Alex Mashinsky, and the lawsuit is an attempt by the crypto company to shift responsibility for its organizational incompetence to others.
Both lawsuits seek to recover funds that each party believes the other is owed. Exact amounts are not called.
In early June, Celsius Network, which has 1.7 million clients, faced difficulties due to “extreme market conditions” and began to restructure the business, inviting third-party consultants and lawyers. On June 13, the company suspended all withdrawals, swaps and transfers between accounts, and on July 13, it filed an application for protection from creditors.
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