Celsius sues StakeHound to recover $150 million in crypto assets

A bankrupt cryptocurrency lender has filed a lawsuit against steaking platform StakeHound, demanding the return of $150 million worth of crypto assets owned by Celsius.

According to the court
document, Celsius placed 40 million MATIC, 66,000 DOT, 35,000 ETH and other assets on StakeHound. In return, Celsius received stTokens, which could be invested or exchanged for their crypto assets at StakeHound. According to Celsius’ complaint, StakeHound demanded arbitration against Celsius, arguing that the platform had no obligation to exchange native ethers for stTokens for the bankrupt cryptocurrency lender.

Celsius’ lawyers argue: the StakeHound arbitration filing violates Section 362 of the U.S. Bankruptcy Code, which prohibits creditors from suing or collecting a debt from a company if it has filed for bankruptcy. In February, the cryptocurrency lender unveiled a restructuring plan in which it proposes to create an open platform to be sponsored by NovaWulf, which invests in digital assets