The crypto lending platform Celsius has settled a three-year-long case with KeyFi CEO Jason Stone, as confirmed by a letter submitted to the judge detailing the agreement. KeyFi had previously served as Celsius’s investment manager from 2020 to 2021. The official letter, which was sent to US bankruptcy judge Martin Glenn, indicated that both parties had reached a settlement agreement.
KeyFi had worked under the Celsius umbrella as Celsius KeyFi and expected to receive part of the profits it made under Celsius over various staking and DeFi strategies. However, KeyFi claimed that Celsius had failed to honor a “handshake agreement,” leading to KeyFi missing out on potentially millions of dollars. Stone also accused Celsius of running a Ponzi-style operation by luring depositors with high interest rates to repay earlier depositors and creditors.
Despite the settlement, neither Celsius nor KeyFi or Stone immediately responded to BeInCrypto’s request for comment on the matter. Trust is essential in partnerships within the crypto space, but this case highlights the importance of verifying all aspects of an agreement and operations to prevent misunderstandings. It serves as a reminder to balance trust with verification to avoid potential issues in the future.
In light of this settlement, it is crucial for individuals to independently verify facts and consult with professionals before making decisions based on such information. BeInCrypto adheres to unbiased and transparent reporting guidelines, aiming to provide accurate and timely news content for its readers. The Terms and Conditions, Privacy Policy, and Disclaimers have been updated to ensure transparency and accountability in reporting.
