The liquid staking platform StakeHound is being sued by bankrupt cryptocurrency lender Celsius Network after it failed to refund tokens worth $150 million that belonged to Celsius
According to the document, the corporation invested 25,000 native Ether stakes, 35,000 Ether (ETH), 66,000 Polkadot (DOT), and 40 million Polygon (MATIC)
The total value of these tokens, according to Celsius, is $150 million
Celsius received "stTokens" in return for these tokens, which they could use to make new investments or give back to StakeHound in order to get their cryptocurrency
However, the most recent filing claimed that StakeHound, when confronted with its breaches of duty to Celsius, wanted arbitration against Celsius and claimed it "has no obligation" to convert native ETH for the stTokens
Celsius contends that StakeHound's arbitration petition breaches the "automatic stay" provision of section 362 of the United States Bankruptcy Code
This law prohibits creditors from pursuing legal action or debt collection against a business or individual as soon as they declare bankruptcy.