- Cryptocurrency lender Celsius Network sued a former investment manager, accusing him of losing or stealing tens of millions of dollars in assets before the crypto lender went bankrupt last month, reported Reuters.
- Jason Stone and his company KeyFi Inc. were charged by Celsius with "gross negligence" and "extraordinarily inept" crypto investment after Stone misrepresented himself as a pioneer in the industry.
- The case was filed in Manhattan bankruptcy court.
- Celsius said Stone proved "incapable" of deploying coins profitably, causing "many tens of millions of dollars" in losses.
- Celsius said he then misappropriated assets to buy hundreds of non-fungible tokens that he stored out of reach, and covered his tracks by using Tornado Cash.
- Also Read: Bankrupt Celsius' Token Shoots Up 25% on Twitter-Driven Short Squeeze
- In an emailed statement, Stone's lawyer Kyle Roche states that, KeyFi's compensation, including NFTs, had been authorized by Celsius Chief Executive Alex Mashinsky.
- "Celsius's most recent filing is an attempt to rewrite history and use KeyFi and Mr. Stone as a scapegoat for their organizational incompetence," Roche added.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.