Coinspeaker
Celsius Agrees to Liquidate Tokens and Rare NFTs in Settlement with KeyFi Founder
Bankrupt crypto lender Celsius may finally be seeing the end of its heated lawsuit with KeyFi founder Jason Stone. According to a court filing last week, the two parties have now reached a settlement agreement, one that may hold serious implications for the crypto and NFT markets in general.
Celsius KeyFi Agreement Includes Transfer of Valuable Digital Assets amid Legal Resolution
The resolution mandates KeyFi to transfer a wide range of assets, including hundreds of different tokens and highly sought-after NFTs, to Celsius, which plans to liquidate them over the next twelve months. KeyFi will also transfer the $1.1 million proceeds of a Mutant Ape Yacht Club sale to billionaire Adam Weitsman that is currently being held in escrow.
As court filings reveal, the assets comprise a variety of cryptocurrencies held in different wallets that feature small balances of tokens like Dogecoin and USD Coin. The assets to be transferred also include notable NFTs such as 13 CryptoPunks, three Fidenzas by Tyler Hobbs, 19 Meebits, four Mutant Apes, and several other high-end tokens from reputable collections like World of Women, Art Blocks, and Rarible.
Settlement Terms and Market Implications
The inclusion of high-profile NFTs in the liquidation process is expected to influence their market prices. Expectedly, this may potentially impact the broader NFT ecosystem that has experienced fluctuating demand in recent months.
Celsius’ part of the agreement will see it initiate the liquidation process, starting with an initial payment of $300,000 to KeyFi and Jason Stone. It will then transfer a rare one-of-one NFT by Marco Santorini as the concluding part of the terms.
The liquidation strategy involves selling off the transferred assets, with Celsius committing to sharing 10% of the proceeds, up to $500,000, with KeyFi and Stone. Given the substantial value of the assets involved, particularly the valuable NFTs, it is anticipated that this cap will be quickly met once Celsius gets on the execution of the liquidation plan.
This settlement marks the conclusion of a protracted legal battle between Celsius and Jason Stone, who is also recognized under the pseudonymous 0xb1 X account. The dispute, which stems from the alleged ties between Stone and the bankrupt crypto lender KeyFi, highlights the complexities and legal ambiguities that can be found in decentralized finance (DeFi) and NFT ecosystems.
While one can expect that this resolution will set a precedent for similar legal disputes involving digital assets and NFT collections, the timing of the liquidation amid fluctuating demand for NFTs raises has sparked concerns about potential market reactions.
Celsius Agrees to Liquidate Tokens and Rare NFTs in Settlement with KeyFi Founder
