After the company accused a former manager of supervising the theft of millions of dollars, the circumstances surrounding the demise of cryptocurrency lender Celsius have continued to change.
Celsius said in a complaint filed on August 23 that the now-bankrupt lender has claimed that the former money manager, known as Jason Stone and his company KeyFi Inc., misrepresented his investing talents to the business and either lost or misappropriated the money in question.
The lawsuit claims that after allegedly providing misleading information regarding his capacity to handle the investment market, the defendant, who joined the company in 2020, expressed incompetence.
The manager did not provide price swing protection.
According to the lawsuit, KeyFi’s lack of investment skill became apparent after Celsius discovered that KeyFi was “extraordinarily unskilled” when it came to cryptocurrency investments and that it could not provide security against price fluctuations. As a result, the lender demanded that the manager turn over any funds he was in charge of.
Additionally, Celsius claimed that the defendants neglected to disclose the investment and converted business cash into non-fungible tokens (NFTs). The lender that later stopped allowing customer withdrawals said that KeyFi used the now-approved Tornado Cash crypto mixer in order to avoid discovery.
Following Stone’s lawsuit against the lender, which accused the business of organizing fraud and defrauding him of potentially hundreds of millions of dollars in payment, the Celsius lawsuit was filed.