![\"Keyfi](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/07\/shutterstock_2171884823.jpg\")
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On July 7, 2022, the pseudonymous non-fungible token (NFT) collector known as \u201c0xb1\u201d published a Twitter thread that discusses the collector\u2019s true identity and his relationship with the crypto lending firm Celsius. According to 0xb1, otherwise known as Jason Stone, his team found \u201cmajor problems in how the company operated,\u201d and Stone told Celsius his team would terminate their relationship in March 2021. When the team started to unwind defi positions, Stone says Celsius suffered impermanent loss and accused him of being a thief.<\/strong>\n<\/p>\n \n Hi all! I\u2019m Jason Stone, and from August 2020 until April 2021, I led the group of talented individuals who managed the 0xb1 address.<\/p>\n \u2014 0xb1 (@0x_b1) July 7, 2022<\/a><\/p>\n<\/blockquote>\n Stone said<\/a> on Thursday, using the 0xb1 official Twitter account, that he and a \u201cgroup of talented individuals\u201d managed the 0xb1 address from August 2020 until April 2021. In the Twitter thread, he said that he felt \u201cit is only prudent to finally set the record straight.\u201d When Celsius partly acquired Keyfi, Stone explained that by the time the two firms went separate ways, his team was \u201cmanaging nearly $2 billion of assets.\u201d<\/p>\n The Keyfi founder then detailed that Celsius<\/a> assured him that there was \u201crisk management and hedging in place to account for fluctuations in token prices.\u201d \u201cBut in late Feb 2021, we discovered Celsius had lied to us,\u201d Stone wrote. \u201cThey had not been hedging our activities, nor had they been hedging the fluctuations in cryptoasset prices. The entire company\u2019s portfolio had naked exposure to the market,\u201d he added.<\/p>\n \n The lawsuit and Stone\u2019s Twitter thread explain that he tried on many occasions to settle disputes with Celsius in a private manner. The filing registered in the state of New York says: \u201cOn September 1, 2021, Kyle Roche<\/a>, as attorney for Stone and Keyfi, again emailed Mr. Hurley demanding that Celsius make the earnout payment, or else commit to paying for an accounting and agree to mediation. Celsius refused.\u201d Toward the end of the 0xb1 Twitter account thread, Stone said:\n<\/p>\n Given the public speculation about the company\u2019s solvency, and my observation of Celsius\u2019 loose relationship with the truth, I feel it is only prudent to finally set the record straight. I have brought legal action against Celsius to settle this issue once and for all.<\/p>\n<\/blockquote>\nKeyfi Founder, Also Known as \u20180xb1,\u2019 Sues Crypto Lender Celsius<\/h2>\n
\nJason Stone, the founder of Keyfi<\/a>, a decentralized finance (defi) aggregator startup that Celsius<\/a> had a stake in, has accused Celsius of practicing a number of bad standards including \u201coperating a Ponzi scheme.\u201d Stone addressed the public via Twitter and used an account called \u201c0xb1<\/a>,\u201d a well known NFT whale in the crypto industry with 121,200 Twitter followers. Bitcoin.com News reported on 0xb1 inking a deal<\/a> with the talent agency Creative Artists Agency (CAA) in October 2021.
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Lawsuit Says Celsius Was \u2018Operating a Ponzi Scheme,\u2019 Stone Aims to \u2018Finally Set the Record Straight\u2019<\/h2>\n
\nFrom the 0xb1 Twitter account, Stone also shared a court filing as he has taken legal action against Celsius. \u201cThe recent revelation that Celsius does not have the assets on hand to meet its withdrawal obligations shows that defendants were, in fact, operating a Ponzi scheme,\u201d the lawsuit<\/a> details. However, the lawsuit does note that the parties acted together \u201cwithout any formal written agreement\u201d and both parties were \u201cengaged in an enterprise for \u2018mutual benefit\u2026 based on mutual respect and trust.\u2019\u201d Stone is being represented by the crypto boutique law firm Roche Freedman LLP<\/a>.<\/p>\n\n