According to recent press reports, the bankrupt cryptocurrency lending company Celsius is suing the liquidity staking platform StakeHound for not returning tokens worth $150 million.
Celsius entrusted StakeHound with 25,000 ETH, 35,000 ETH, 40 million MATIC, and 66,000 DOT as collateral in 2021. Celsius exchanged tokens worth over $150 million for StakeHound’s “stTokens.”
The US Bankruptcy Court for the Southern District of New York has announced that StakeHound has filed an arbitration agreement against Celsius in Switzerland following the bankruptcy of the lending company.
StakeHound argues that they have “no obligation” to redeem stTokens for other tokens. They also claim to have lost the keys related to the 35,000 C ETH and are exempt from returning these tokens.