• Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA
Tuesday, December 5, 2023
WongaNews.com
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
WongaNews.com
No Result
View All Result

Celsius sues KeyFi, alleges Jason Stone stole over 1,000 ETH of investor funds for NFTs

August 23, 2022
in Altcoins
Reading Time: 3 mins read
A A
Celsius sues KeyFi, alleges Jason Stone stole over 1,000 ETH of investor funds for NFTs
ShareShareShareShareShare

Jason Stone of KeyFi filed a lawsuit against Celsius, claiming that Celsius owed KeyFi “millions of dollars,” and now Celsius returned fire by suing KeyFi and Jason Stone for the mismanagement and theft of client funds.

The complaint describes KeyFi and Stone as

“extraordinarily inept at the investment strategies they were undertaking.”

The legal complaint claims that Stone was given access to the private keys of a Celsius-owned wallet, referred to as “0xb1.” Said wallet existed to allow Stone to manage Celsius’ DeFi strategy, according to terms agreed between both parties.

However, Celsius alleges that Stone misused the funds to purchase CryptoPunk, Bullrun Babes, and hundreds of other NFTs in February 2021 for a total of 1,070 ETH. Stone later sold four of the CryptoPunks for 1,071 ETH before transferring the ETH to Tornado Cash. Many of the NFTs purchased by Stone were also allegedly moved from Celsius-owned wallets to a wallet fully controlled by Stone.

Celsius claims that Stone had no authorization to purchase NFTs with Celsius funds. The complaint also states that Stone may have done so as he was “aware that transfers of NFTs in and out of the Wallets would not be visible to Celsius through the operative dashboards.”

The lawsuit indicates that Stone used a mixture of NFT purchases and Tornado Cash to siphon funds from Celsius wallets without raising internal alarms.

Kyle Roche, a founding partner at Roche Freedman who represent Stone, replied by saying that the NFT purchases were “authorized by Celsius’s CEO Alexander Mashinsky.”

As alleged by KeyFi in the complaint it filed last month, the compensation that KeyFi received (including in the form of NFTs) was expressly authorized by Celsius’s CEO Alexander Mashinsky.

— Kyle Roche (@KyleWRoche) August 23, 2022

After Celsius broke ties with Stone, it withdrew funds from the 0xb1 wallet as Stone still had access to the private keys. However, the wallet received a $1.4 million DAI airdrop in September 2021, allegedly stolen by Stone and laundered through Tornado Cash along with an additional 320 ETH.

Alongside the allegations of theft, Celsius claims that Stone lost over $50 million in Celsius funds in a poorly executed DeFi trade “after a sharp fall in the price of ETH.” The position was allegedly liquidated on February 23, 2021, a day when Ethereum dropped from 24% to $1,355 before recovering to $1,576 to close the day down to just 10%.

Among other complaints, Celsius also alleges that Stone Invested in the NFT platform, Nifty, with Celsius-owned funds. Celsius claims it should be given its Nifty share as part of the settlement.

While the complaint does not explicitly state that the funds allegedly stolen by Stone belonged to customers, it does note that Celsius was “laser-focused on recovering the balance for the benefit of its customers.”

The statement indicates that it was in its customers’ interest to recover the funds from 0xb1. While the information may refer to ensuring Celsius had sufficient liquidity to operate, the funds likely belonged to Celsius’ customers.

Celsius appears to be looking to recover any and all funds owed to it as it also filed a suit against Prime Trust for roughly $17 million on Tuesday.

Get an Edge on the Crypto Market 👇

Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits


Credit: Source link

Related articles

Price Prediction For Mid-December 2023

Price Prediction For Mid-December 2023

December 5, 2023
Top Gaming Tokens React to GTA 6 Trailer Release

Top Gaming Tokens React to GTA 6 Trailer Release

December 5, 2023
ShareTweetSendPinShare
Previous Post

Academic Study Finds Broader Front-Running Problem at Coinbase

Next Post

NFT Exchange SudoRare Rug Pull $800,000 Hours After Launch, Goes Offline

Related Posts

Price Prediction For Mid-December 2023

Price Prediction For Mid-December 2023

December 5, 2023

VeChain (VET) has been actively involved in various development initiatives and projects, including the recent introduction of “The HiVe” event,...

Top Gaming Tokens React to GTA 6 Trailer Release

Top Gaming Tokens React to GTA 6 Trailer Release

December 5, 2023

The eagerly anticipated arrival of GTA 6 is finally on the horizon, as marked by the official release of the...

Burn Rate Spikes 7,686,774%, Will it Delete a Zero?

Burn Rate Spikes 7,686,774%, Will it Delete a Zero?

December 5, 2023

Shiba Inu’s (SHIB) burn rate has spiked by over 7.6 million percent, burning over 8.3 billion tokens in the last...

$18,000 in SHIB Turns $43.7 Million in December 2023

$18,000 in SHIB Turns $43.7 Million in December 2023

December 4, 2023

There’s magic in numbers and numbers are magical in the world of cryptocurrencies. A mere investment of $100 can turn...

Shiba Inu Forecasted To Hit 10 Cents: Here’s When

Shiba Inu Forecasted To Hit 10 Cents: Here’s When

December 4, 2023

The Shiba Inu community is buzzing with speculation as enthusiasts and investors ponder the prospect of SHIB reaching 10 cents....

Load More
Next Post
NFT Exchange SudoRare Rug Pull $800,000 Hours After Launch, Goes Offline

NFT Exchange SudoRare Rug Pull $800,000 Hours After Launch, Goes Offline

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Tighter rules make an impact on UK crypto markets – Financial Times

Tighter rules make an impact on UK crypto markets – Financial Times

November 10, 2023
Nukta to Feature Sandbox Lands and Avatars in New Web3 Push in the MENA Region

Nukta to Feature Sandbox Lands and Avatars in New Web3 Push in the MENA Region

November 28, 2023
CAW debuts NFT Exhibition in the Metaverse with the Launch of Museum of CAW Art (MoCA)

CAW debuts NFT Exhibition in the Metaverse with the Launch of Museum of CAW Art (MoCA)

November 29, 2023

About Us

Wonga News is an online news portal that aims to provide the latest crypto news, blockchain, regulations, and much more stuff like that around the world. We promise to share only high quality content from the world's best crypto sources. Feel free to get in touch with us!

What’s New Here!

  • Binance settlement likely a watershed moment in crypto regulation: CFTC Commissioner
  • November Monthly NFT Report with Footprint Analytics
  • Bangladesh’s savings update Forex reserves fall to $15.82 billion

Newsletter

Loading
  • Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 WongaNews.com - All Rights Reserved!

No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading

© 2022 - WongaNews.com - All Rights Reserved!

  • Stride Staked InjectiveStride Staked Injective(STINJ)$16.52-4.28%
  • bitcoinBitcoin(BTC)$43,707.004.72%
  • ethereumEthereum(ETH)$2,280.282.56%
  • USDEXUSDEX(USDEX)$1.07-0.47%
  • tetherTether(USDT)$1.00-0.13%
  • binancecoinBNB(BNB)$231.860.37%
  • rippleXRP(XRP)$0.620.55%
  • solanaSolana(SOL)$61.461.75%
  • usd-coinUSDC(USDC)$1.000.07%
  • staked-etherLido Staked Ether(STETH)$2,275.292.45%
  • cardanoCardano(ADA)$0.4187994.87%
  • dogecoinDogecoin(DOGE)$0.0923864.34%
  • tronTRON(TRX)$0.1034890.55%
  • chainlinkChainlink(LINK)$15.761.08%
  • avalanche-2Avalanche(AVAX)$23.779.53%
  • ToncoinToncoin(TON)$2.483.89%
  • matic-networkPolygon(MATIC)$0.811.69%
  • polkadotPolkadot(DOT)$5.753.86%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$43,573.004.60%
  • Wrapped stETHWrapped stETH(WSTETH)$1,865.160.38%
  • shiba-inuShiba Inu(SHIB)$0.0000095.03%
  • litecoinLitecoin(LTC)$73.320.73%
  • daiDai(DAI)$1.00-0.15%
  • bitcoin-cashBitcoin Cash(BCH)$248.470.34%
  • uniswapUniswap(UNI)$6.253.78%
  • leo-tokenLEO Token(LEO)$3.741.00%
  • okbOKB(OKB)$57.78-1.68%
  • stellarStellar(XLM)$0.1222261.11%
  • KaspaKaspa(KAS)$0.141588-0.32%
  • moneroMonero(XMR)$170.781.98%
  • ethereum-classicEthereum Classic(ETC)$20.293.09%
  • cosmosCosmos Hub(ATOM)$9.853.05%
  • true-usdTrueUSD(TUSD)$1.00-0.14%
  • crypto-com-chainCronos(CRO)$0.096309-0.25%
  • Aerarium FiAerarium Fi(AERA)$7.12-13.06%
  • internet-computerInternet Computer(ICP)$5.103.11%
  • nearNEAR Protocol(NEAR)$2.2810.23%
  • filecoinFilecoin(FIL)$4.793.79%
  • BSCEXBSCEX(BSCX)$237.310.49%
  • hedera-hashgraphHedera(HBAR)$0.0657465.58%
  • lido-daoLido DAO(LDO)$2.443.51%
  • AptosAptos(APT)$7.663.46%
  • BittensorBittensor(TAO)$346.134.81%
  • thorchainTHORChain(RUNE)$6.52-1.77%
  • immutable-xImmutable(IMX)$1.486.39%
  • MantleMantle(MNT)$0.58-2.91%
  • vechainVeChain(VET)$0.0249374.88%
  • optimismOptimism(OP)$1.833.88%
  • blockstackStacks(STX)$1.167.57%
  • binance-usdBUSD(BUSD)$1.00-0.33%