Celsius to Liquidate Tokens and NFTs including CryptoPunks and Fidenzas in KeyFi Agreement
Celsius, the bankrupt crypto lender, has reached an agreement with KeyFi and its founder, Jason Stone, after months of legal battles. The dispute centered around allegations of fraud and mismanagement of funds.
The settlement brings an end to the litigation between the two parties, in which Jason Stone was also known by the pseudonymous account 0xb1 X. The terms of the agreement state that KeyFi will transfer a variety of assets to Celsius, including valuable tokens and NFTs, in exchange for payments of up to $800,000 and a rare NFT.
Details of the Settlement Agreement
KeyFi will transfer wallets containing various tokens and high-value NFTs to Celsius. Among these assets are the proceeds from the sale of a $1.1 million Mutant Ape Yacht Club, currently held in escrow. KeyFi will also transfer assets related to DeFi protocols such as Spartan, Unslashed, and Stakehound.
Celsius will liquidate these assets over the next twelve months. As part of the agreement, Celsius will make an initial payment of $300,000 to KeyFi and Jason Stone, as well as a unique NFT created by Marco Santorini. Subsequently, 10% of the proceeds from the liquidations will be paid to KeyFi, up to a maximum of $500,000. Given the high value of some of the involved NFTs, it is likely that this cap will be reached.
Composition of the Wallets
The wallets contain a wide variety of crypto tokens, usually in small quantities. For example, they include approximately $500 worth of Dogecoin and $2,600 worth of USDC stablecoins, among many others. However, the wallets also contain several high-value NFTs: 13 CryptoPunks, three Fidenzas by artist Tyler Hobbs, 19 Meebits, four Mutant Apes, 14 Otherdeeds, as well as tokens from projects like World of Women, Art Blocks, and Rarible.
Potential Impact on the NFT Market and Implications for Celsius and KeyFi
The liquidation of these NFTs by Celsius could have an impact on the floor price of these collections. Demand for NFTs has significantly decreased over the past year, and the massive sale of these assets could exacerbate this trend. The NFT market is sensitive to supply and demand fluctuations, and a significant liquidation like this could result in lower prices for the affected collections.
For Celsius, this liquidation represents an attempt to recover funds after bankruptcy while partially satisfying its creditors. For KeyFi and Jason Stone, the agreement marks an end to a period of legal uncertainty and allows them to profit from the transferred assets.
