As per Bloomberg News, Celsius Network LLC’s former money manager was accused of deceiving the company about his investing abilities. The former money was also blamed for losing and stealing tens of millions of dollars in assets, per the bankrupt crypto lender’s lawsuit on Tuesday.
It may be recalled that Celsius had filed for bankruptcy in the past month after it started freezing assets. Celsius alleges that Keyfi Inc and its founder Jason Stone did not speak the truth about its ability to invest and were not competent enough to manage the assets of Celsius. Stone was outright blamed for theft by the crypto lender.
Reasons for Accusation
Stone’s journey in Celsius’ money management started in 2020, as stated in the complaint. Since Celsius was not satisfied with the reporting practices of Keyfi Inc, the crypto lender demanded that the coins be returned just months following the arrangement while under the control of Jason. Celsius could not recover the assets and found that Keyfi Inc was extremely clumsy in crypto investing management and miserably failed to hedge against the price swings while mentioning the same in the lawsuit.
Aside from mismanagement, the crypto lender also accused Keyfi Inc of converting the assets of Celsius into non-fungible tokens and stealing them, covering the tracks with the help of a crypto mixer which was banned by the US Treasury Department recently.
The allegations have come after Jason Stone sued the crypto lender last month, alleging Celsius of fraud and cheating Stone out of hundreds of millions of dollars in payments.
Bloomberg News reports that Celsius Network LLC, 22-10964, US Bankruptcy Court for Southern District of New York, Manhattan is the bankruptcy case of Celsius.
