- In the US, KeyFi Inc. has filed suit against Celsius Network Limited and Celsius KeyFi LLC.
- Celsius is demanding damages, alleging that it operated as a Ponzi scheme.
- Accordingly, KeyFi managed the investments for Celsius, but never received the promised profit sharing.
Given the weight of the allegations and the desolate situation Celsius finds itself in, the lawsuit filed in the US adds fuel to the fire. KeyFi Blames Celsius in CaseFastball system should be set up. According to this, existing customers can only be paid with funds from new customers.
KeyFi claims to have worked with Celsius from August 2020 to March 2021. In particular, they managed the funds for Celsius by implementing investment strategies in the DeFi sector and accumulating cryptocurrencies. The case now indicates that KeyFi should not have received the agreed profit sharing. Additionally, the company sees itself as being misled by Celsius because it was not fully or properly informed about risks and business practices.
However, the case remains very vague as to specific claims. Apart from the preliminary agreement, the two parties never fixed any further agreement in writing. Conversely, Celsius KeyFi LLC may have been established for joint ventures, although it is owned by Celsius. While the KeyFi itself looks damaged, it underlines the overall situation well. Deals for dizzying sums were apparently concluded with a handshake, which suited the image well.
A sad farewell to Celsius
The CeFi lender’s collapse leaves deep scars. Whether KeyFi will succeed in court with its allegations remains in question. Instead of a fixed amount, only a percentage is put up for discussion. It ranges from 7.5% to 20%. Which ratio is used as the basis for the calculation is said to depend on the investment strategy used.
The court will determine the actual amount. If there is still something to distribute before then, the suit shows that you want to protect the claims. So far, Celsius is not in bankruptcy proceedings. However, it is considered likely to happen. Celsius is currently fighting for its survival, but has the worst possible cards due to the overall situation.
If the various allegations in KeyFi’s lawsuit prove true, it could worsen the company’s overall situation. Because depending on the facts, even a pyramid scheme can be punishable.
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