KeyFi Founder Banned From Transferring Assets Related To Celsius’s Bankruptcy Case

Key Points:

• The Celsius bankruptcy-related property cannot be transferred or sold by KeyFi founder Jason Stone or anybody connected to the staking company.
• Numerous NFTs used in decentralized financial operations are included in the temporary restraining order.
• If Stone believes that transactions unrelated to the listed NFTs need to be performed to avoid liquidation, the parties should send a request to Celsius and its creditor’s committee.

According to a temporary restraining order submitted in court on Tuesday, KeyFi founder Jason Stone and others connected to the stake company are prohibited from transferring or disposing of the majority of property connected to the Celsius bankruptcy case.

Numerous NFTs used in decentralized finance operations are mentioned in the interim restraining order, including 13 Cryptopunk NFTs and one Bored Ape Yacht Club NFT. The order permits Stone and KeyFi to keep deploying the NFTs.

According to the restraining order against Stone and KeyFi, the parties are not allowed to transfer or dispose of any property, and the company is also not allowed to employ Tornado Cash or any other tools to hide the whereabouts of any property that may otherwise be used to meet a court order.

Stone or other KeyFi employees shall submit a request to Celsius and the Celsius Official Committee of Unsecured Creditors in the bankruptcy case if they sincerely feel that transactions unrelated to the listed NFTs must be carried out to prevent liquidation or other financial problems.

Additionally, Celsius and the creditor’s committee must get a summary of earnings and losses related to the actions allowed under the interim restraining order from Stone and KeyFi. Beginning on Friday, the statements will be given out every two weeks.

Since Celsius purchased a portion of KeyFi in 2020, the two parties have been involved in a legal dispute for months. In a lawsuit filed in July, Stone charged Celsius with fraud and poor management. Later, Celsius filed a lawsuit against KeyFi and its founder, claiming the company had stolen, misplaced, and laundered bitcoin worth millions of dollars.

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Harold

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