Former Asset Manager KeyFi Sues Celsius for Fraud
- According to Stones, the legal filing became necessary following the refusal of Celsius to pay for the services rendered on its behalf by Keyfi.
KeyFi, a former asset manager for Celsius, has instituted a legal tussle against the crypto lender. This development was confirmed in a series of Twitter posts relayed by the head of the firm, Jason Stone on Thursday.
According to Stones, the legal filing became necessary following the refusal of Celsius to pay for the services rendered on its behalf by Keyfi. Recall that the asset managing firm previously managed some deposited funds by Celsius’s clients. Although the two firms had now terminated their partnership.
However, the Twitter post by Stone reveals that Keyfi during its partnership with Celsius managed about $2 billion on its behalf. Now, he indicted the crypto lender for defrauding his team during the business partnership.
KeyFi On Celsius Past
As observed in KeyFi’s legal filing, Celsius, the crypto lender is yet to pay for the services rendered nor acknowledge its termination of the deal.
According to Stones, the crypto lender during the business partnership deployed its risk management team to assess Keyfi’s investment techniques. The team, as revealed by the Stones, assured Keyfi that it was making an effort to reduce Celsius’s exposure to market volatility and impermanent losses.
The court filling furthers shows that he later discovered the assurance by the team as false, stressing that the crypto lender was fully exposed to the risks. He submitted that at the time KeyFi tried to loosen up its DeFi situations, Celsius had become ravaged by impermanent loss. Stones hinted that the crypto lender blamed the impermanent loss it suffered on Keyfi, thinking he and his team pilfered its money.
The KeyFi head revealed making a persistent attempt to settle the differences with Celsius and secured the funds for the rendered services. He hinted that all his efforts yielded no positive result, hence his resolve to forge ahead to court. In the legal filing, Celsius was further accused of leveraging the deposits of its clients to compromise the market. More so, the filing claims the crypto lender is yet to properly account for some obtainable transactions.
Worth noting that KeyFi was established in 2019 by Jason Stone. The asset managing venture was reportedly acquired by Celsius in 2020. According to findings, KeyFi instigated the relationship with the crypto lender through the management of an Ethereum address in 2020. The address, as revealed, started with 0xb1. In the course of the deal, both firms shared the private keys to the address. Notably, the KeyFi’s head boasted how he navigated his company to initiate robust DeFi techniques for the crypto lender during the partnership.
However, as of press time, the crypto lender is yet to react to the accusation by Keyfi. However, as of press time, the crypto lender is yet to react to the accusation by Keyfi.
Recall that the crypto lender had in the wake of its liquidity crisis halted withdrawals, deposits, and trading on its network. In Late June, Celsius revealed its resolve to undergo robust restructuring.
As of today, the crypto lending firm had reshuffled its management board. To date, the crypto lender is yet to announce the date on which all suspended activities will commence on its network. This development has continued to create palpable fears in the minds of its clients.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
