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Now-bankrupt crypto lender Celsius sues former asset manager for supposed theft
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Celsius Network LLC on Tuesday 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.
In a complaint filed in Manhattan bankruptcy court, Celsius accused Jason Stone and his company KeyFi Inc of "gross negligence" and "extraordinarily inept" crypto investing, after Stone falsely portrayed himself as a pioneer in the field.
Celsius said Stone proved "incapable" of deploying coins profitably, causing "many tens of millions of dollars" in losses.
It said he then misappropriated assets to buy hundreds of non-fungible tokens ("NFTs") that he stored out of reach, and covered his tracks by using Tornado Cash, a crypto "mixer" that the U.S. Treasury Department sanctioned on Aug. 8 because it might help launder cybercrime proceeds.