Beleaguered Celsius Network had gotten caught in another cross fire after KeyFi’s legal suit. The software and investment Firm KeyFi has said that Celsius has refused to honor the agreement that was signed with the company. On top of this, the company has also said that Celsius was running some kind of ponzi scheme while running the lending and borrowing protocol.
What’s the Feud Between Celsius and KeyFi?
KeyFi partnered with Celsius Network to mitigate risks and incentivize the stakers. However,KeyFi has said that funds were misrepresented by the Celsius Network to show false balances. Nonetheless, the court documents established that KeyFi had direct shares under an MOU signed with Celsius Network. But Celsius was using a different method to embezzle funds and show false representations.
Simply put, Celsius was giving very high interest rates to new depositors and lured old depositors with money as bait. To further make the matter worse, Celsius told keyFi that they were hedging the risks of Oxb1. They did this to nullify impermanent loss. However,Oxb1has claimed that none of that had happened.
That said, it means that all the assets were having naked exposure in the market and the company had done nothing about it!
Meanwhile Celsius has already filed for bankruptcy and the crypto company has abrogated any possibility of helping the beleaguered protocol from reviving back to life!
