Celsius Network files “contradictory complaint” against EquitiesFirst

Bankrupt crypto lender Celsius Network is trying to recover assets from a private lender called EquitiesFirst Holdings, which is owed $439 million in cash and crypto.< /p> News Join us on social networks

Bankrupt cryptocurrency lender Celsius Network has filed a lawsuit against lending company EquitiesFirst Holdings in an attempt to recover its assets.

According to a sealed cross-complaint filed September 6, Celsius is seeking injunctive relief and declaratory relief associated with “recovery of money/property” — as the case title calls it.

The filing named EquitiesFirst and its CEO Alexander Christy as defendants. Additionally, Celsius filed a summons the same day, demanding that the private lender file a motion or response within 35 days.

The adversary's sealed complaint filed against EquitesFirst Holdings. Source: Stretto

EquitiesFirst Holdings is an Indianapolis-based private loan company that owed Celsius Network $439 million as of July 2022.

Celsius began taking secured loans from EquitiesFirst in 2019 to “support its operations” due to what Alex Mashinsky described in a subsequent bankruptcy filing as a “lack of institutional loans available to companies. of cryptocurrencies”, at the time.

However, in July 2021, Celsius Network sought to recover the collateral it had pledged to EquitiesFirst, but was advised that the lender could not return the amount provided by Celsius.

As of July 2021, EquitiesFirst owed Celsius a total of $509 million. The increase from $439 million to $509 million is due to...