Celsius Files Lawsuit Against StakeHound for Failure to Return $150M in Crypto Assets
- Celsius has initiated legal action against StakeHound for not repaying $150 million worth of digital assets, including Ethereum (ETH), Polkadot (DOT), and Polygon’s MATIC.
- StakeHound allegedly refused to return the funds when it went bankrupt and filed an arbitration agreement in Switzerland, claiming no obligation to repay.
- Celsius argues that the arbitration violates the U.S. Bankruptcy Code, which prohibits creditors from taking legal action against bankrupt entities.
- The bankrupt lender seeks to compel StakeHound to return the funds, pay damages for breach of contract, and refrain from pursuing arbitration.
- This is part of Celsius’s efforts to recover funds from various platforms after filing for bankruptcy.
- Celsius recently received court approval to liquidate altcoins for Bitcoin and Ethereum.
- According to Arkham Intelligence, Celsius currently holds $598.67 million in digital assets.
The legal battle between Celsius and StakeHound highlights the challenges faced by bankrupt crypto lenders in recovering funds. Celsius’s lawsuit aims to hold StakeHound accountable for failing to return the entrusted assets, while StakeHound contends that it has no obligation to repay. This case raises important questions about the legal rights and responsibilities of stakeholders in the crypto industry. As the outcome unfolds, it could have implications for the broader crypto lending space.