Celsius Network has served its former chief investment officer, Jason Stone and KeyFi Inc., with a lawsuit claiming he used his position to steal assets worth millions of dollars for personal gain.
The lawsuit, filed in the United States Bankruptcy Court in the Southern District of New York, seeks the return of millions of dollars in assets and the return of company property the former fund manager allegedly took off with. after leaving the company.
“Defendants stole millions of dollars in coins from Celsius ‘wallets’ – blockchain addresses where coins and other digital assets can be stored – by transferring them to wallets which, upon information and belief, are controlled by the defendants,” said the presumed bankrupt lender in the suit.
Celsius accuses ex-manager of theft in broad daylight
Celsius also claims that Stone used his cryptocurrencies to purchase non-fungible tokens, then stole those NFTs by transferring them to wallets that, based on information and belief, he owns or controls, then refused to account for these decisions when managing the office.
“Defendants also sold some of the stolen assets for seven-figure returns (which they pocketed). Stone and/or KeyFi also appear to have used Celsius coins to acquire interests in numerous companies and platters for themselves. -blockchain-related forms that they continue to wrongfully hold,” Celsius said in the lawsuit.
Stone reportedly used struggling Tornado Cash to cover moves
The lawsuit further alleges that in September 2021, Stone accessed Celsius’ 0xb1 wallet, stole $1.4 million worth of cryptocurrency, then funneled it through the Tornado Cash service which currently does subject to sanctions by the Office of Foreign Assets Control of the United States Treasury Department.
“Stone and KeyFi have laundered millions of dollars of Celsius property (or its product) through Tornado Cash on dozens of occasions, and continue to hold high-value property (and its product) that rightfully belongs to Celsius. 5 “, we read in part in the complaint.
Celsius explains liquidation line with ex-CEO
Celsius, which filed for bankruptcy after freezing withdrawals in June, wants the return of the allegedly stolen assets to the company to go towards its liquidation. The company also said Stone lacked the skills and experience to carry out investment strategies.
Celsius is facing a counterclaim from Stone, who alleges the company was involved in a Ponzi scheme whereby it inflated cryptocurrency prices and presented itself as a transparent, well-capitalized company, while participating to the fall of the TerraUSD stablecoin.
At press time, Stone or a KeyFi Inc. representative were unavailable to answer Be questions.[In]Crypto.
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