Celsius to liquidate tokens, hundreds of NFTs following settlement with KeyFi founder Jason Stone

The Block2024/07/14 22:13

By:The Block

Quick Take Celsius has settled an adversary proceeding with KeyFi and its founder, Jason Stone, following months of legal battles. The settlement agreement will see KeyFi transfer tokens and hundreds of NFTs, including valuable tokens such as CryptoPunks and Fidenzas, to Celsius to be liquidated over the next 12 months in return for up to $800,000 and a rare NFT.

Following a lawsuit and countersuit regarding KeyFi and founder Jason Stone's relationship to bankrupt crypto lender Celsius, the two parties have agreed to settle according to an agreement filed in court last week. Jason Stone is also known as the leader behind the pseudonymous 0xb1 X account.

The settlement agreement will see KeyFi transfer a multitude of assets to Celsius, including wallets containing hundreds of different tokens and valuable NFTs, along with the $1.1 million proceeds of a Mutant Ape Yacht Club sale to billionaire Adam Weitsman currently held in escrow. KeyFi will also transfer assets related to DeFi protocols Spartan, Unslashed, Stakehound, and crypto firm Fireblocks.

Celsius, as per the settlement, will liquidate the assets over the course of the next twelve months. Celsius will pay KeyFi and Stone an initial payment of $300,000 plus a rare one-of-one NFT by Marco Santorini . Then, following the liquidations, Celsius will pay 10% of the proceeds to KeyFi, up to $500,000. (Considering the assets in question contain several valuable NFTs, this cap will likely be reached.)

The wallets in question contain a large variety of various crypto tokens, generally in small balances. For example, the wallets contain about $500 worth of Dogecoin and about $2,600 worth of USD Coin stablecoins, among many others.

However, the wallets also contain several valuable NFTs: 13 CryptoPunks, three Fidenzas by artist Tyler Hobbs, 19 Meebits, four Mutant Apes, 14 Otherdeeds, and dozens of other tokens from projects such as World of Women, Art Blocks, and Rarible. The liquidation of these NFTs over the next year by Celsius could impact the floor price of the collections as NFT demand has largely dried up over the past year.

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