KeyFi Inc is a well-known entity in the staking and investment arena. The company filed a complaint against embattled Celsius, the crypto lending firm. As part of its complaint, KeyFi Inc. has made allegations that Celsius ultimately failed to honor its agreement on profit sharing. This multi-million-dollar agreement included the deployment of many successful DeFi and staking strategies carried out by KeyFi. The complaint also alleges that Celsius operated in a way that resembled ponzi schemes.
This complaint was filed on July 7th. Celsius apparently refused to honor its agreement – which was done via a handshake. KeyFi was expecting to receive percentages of profits it had a part in. Celsius is accused of negligently misrepresenting its controls of risk management and putting out misleading information on business operations. KeyFi acted in good faith when it believed this information and started working with the company.
The complaint was filed in court by KeyFi CEO, Jason Stone. The company was founded in 2020 January and Mr. Stone has worked as an investment advisor. Per information obtained from court documents, KeyFi was Celsius’ investment manager from August 2020 to March 2021. During this time, both companies signed an MoU enabling KeyFi to work for Celsius.
While no specific figure for damages owed by Celsius to KeyFi is not mentioned, the company is owed millions. The companies agreed to profit sharing in the range of 7%-20% based on investment strategies. KeyFi wants a trial with a jury and is seeking major damages, including punitive damages. It remains to be seen how this lawsuit will unfold in the coming weeks.