Today in Crypto Turmoil: Woes Deepen, Legal and Repayment Developments from Celsius, 3AC, Voyager Digital, and More
The market may be on the up as the week draws to a close, but crypto turmoil shows no signs of abating. There are more goings-on at Three Arrows Capital (3AC), Celsius (CEL) is in the spotlight again – and the Voyager journey continues.
Here’s a round-up of the latest happenings in the space.
The yield farming pioneer Jason Stone, the CEO of KeyFi, has filed a lawsuit against the ailing crypto lender Celsius. Stone’s legal team claims that Celsius has failed to honor contracts and has asked a branch of the US, New York Supreme Court to compensate him for an amount that would “be determined at trial.”
The filing claims that Celsius made use of customer funds in a bid to “manipulate cryptoasset markets,” and alleges that Celsius “failed to institute basic accounting controls,” which “endangered those same deposits.”
While Celsius will hope to avoid legal struggles such as the aforementioned case, it has also been busy trying to steady its financial ship.
Data provided by Nansen appears to show that Celsius deposited USD 500 million worth of wrapped bitcoin (WBTC) on the FTX crypto exchange’s platform very shortly after Celsius paid off its debt to the lender Maker (MKR) – reclaiming USD 450 million worth of WBTC collateral.
On Twitter, Nansen quipped that there was “nothing to see here.”
Everyone with skin in the 3AC game has been following events in the British Virgin Isles with keen interest.
The nation’s Supreme Court’s latest ruling in bankruptcy proceedings includes an order for liquidators to “safeguard the value of the company’s assets from market volatility.” This will effectively mean liquidators will be given the power to convert 3AC’s crypto holdings into either fiat or a fiat-pegged stablecoin such as tether (USDT).
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