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KeyFi CEO set to drag Celsius to court

KeyFi CEO

TL;DR Breakdown

  • KeyFi CEO sues Celsius
  • Celsius disregarded an earlier agreement with KeyFi
  • KeyFi CEO claims Celsius is a Ponzi scheme

KeyFi CEO Jason stone has announced plans to drag Celsius to court over its failure to honor the agreement that both parties made. Aside from being a CEO, Stone is one of the strongholds behind the 0xb1 account, known for its yield farming prowess. According to the filing details, the CEO intends to ask Celsius to pay back certain damages. If the defendant refuses to pay the specified amount, he is ready to go to court.

Celsius disregarded an earlier agreement with KeyFi

In its claims, the KeyFi CEO alleged that Celsius mishandled user funds by manipulating the market and refusing to adopt specific measures to control the account. The issues led to the platform risking several deposited funds while failing to come true to its earlier agreed commitments. The filing noted that Celsius disregarded its previous agreement with the KeyFi CEO to share a portion of its profits.

This was because KeyFi supplied most of the trading tactics it used. The CEO also mentioned that Celsius failed to adequately install a system dealing with users’ risks on its platform. The filing also stated that it had fraud charges against the company because the CEO felt Celsius lied to get them to partner on specific projects.

KeyFi CEO claims Celsius is a Ponzi scheme

In the documents provided in court, KeyFi partnered with Celsius from 2020 to 2021 as an investment expert. During this period, both companies put pen to paper on a series of agreements that would guide the collaboration. After the agreement, KeyFi was rebranded to KeyFi Celsius, a company that will be owned and managed by Celsius. The KeyFi CEO also claimed in other parts of the filing that Celsius acted like a Ponzi scheme.

This is because the company brought in new investors while promising them higher interest than the former ones. In the long run, they used funds from the newer investors to pay the former. The CEO also mentioned on Twitter that Celsius promised that they had several hedging approaches to curtail losses suffered in liquidity pools. Aside from this lawsuit, others have come to light, including the one on Solana Labs. Another party has also chosen to sue Terra due to the losses he and others made during the mishap some months ago.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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