Bomb fraud allegations as KeyFi sues Celsius
KeyFi Inc.'s complaint alleges that Celsius failed to honor a multimillion-dollar profit-sharing agreement after deploying many successful staking and DeFi strategies for the company.
New
Staking and investment software company KeyFi Inc. has filed a lawsuit against beleaguered crypto lending firm Celsius, alleging the company operated in a Ponzi fashion and failed to honor a profit-sharing agreement "worth millions of dollars". dollars."
The complaint, filed Thursday, alleges Celsius refused to honor a "handshake agreement" in which KeyFi would receive varying percentages of profits made on Celsius' behalf through number staking and decentralized finance strategies ( DeFi).< /p>
The complaint also accuses Celsius of “negligent misrepresentation” about its risk management controls and “fraud in inducement” via misleading information about its business operations, which was deployed to induce KeyFi to work with Celsius.
The plaintiff is Jason Stone, CEO of KeyFi. He founded the company in January 2020 and has an investor/investment advisor background.
According to court documents, KeyFi served as Celsius's investment manager between August 2020 and March 2021, during which the duo entered into a memorandum of understanding (MOU) that saw the KeyFi work under a vehicle special purpose to own by Celsius, nicknamed Celsius KeyFi.
While a specific figure due to KeyFi is not stated in the complaint, it does state that the sum is worth "millions of dollars" and that the companies had agreed on profit shares ranging from 7.5 % to 20%, depending on the investment. strategy.
Notably, there is also a lengthy section of the complaint alleging that Celsius was conducting a Ponzi scheme by enticing new depositors with high interest rates as a means of "reimbursing previous depositors and creditors".
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KeyFi Inc.'s complaint alleges that Celsius failed to honor a multimillion-dollar profit-sharing agreement after deploying many successful staking and DeFi strategies for the company.
New
Staking and investment software company KeyFi Inc. has filed a lawsuit against beleaguered crypto lending firm Celsius, alleging the company operated in a Ponzi fashion and failed to honor a profit-sharing agreement "worth millions of dollars". dollars."
The complaint, filed Thursday, alleges Celsius refused to honor a "handshake agreement" in which KeyFi would receive varying percentages of profits made on Celsius' behalf through number staking and decentralized finance strategies ( DeFi).< /p>
The complaint also accuses Celsius of “negligent misrepresentation” about its risk management controls and “fraud in inducement” via misleading information about its business operations, which was deployed to induce KeyFi to work with Celsius.
The plaintiff is Jason Stone, CEO of KeyFi. He founded the company in January 2020 and has an investor/investment advisor background.
According to court documents, KeyFi served as Celsius's investment manager between August 2020 and March 2021, during which the duo entered into a memorandum of understanding (MOU) that saw the KeyFi work under a vehicle special purpose to own by Celsius, nicknamed Celsius KeyFi.
While a specific figure due to KeyFi is not stated in the complaint, it does state that the sum is worth "millions of dollars" and that the companies had agreed on profit shares ranging from 7.5 % to 20%, depending on the investment. strategy.
Notably, there is also a lengthy section of the complaint alleging that Celsius was conducting a Ponzi scheme by enticing new depositors with high interest rates as a means of "reimbursing previous depositors and creditors".
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