Lawsuit and Countersuit Resolution

Following a lawsuit and countersuit regarding KeyFi and founder Jason Stone's relationship with bankrupt crypto lender Celsius, the two parties have agreed to settle.

According to an agreement filed in court last week, Jason Stone, the leader behind the pseudonymous 0xb1 X account, will play a significant role in the asset transfer and liquidation.

Transfer of Assets

The settlement agreement will see KeyFi transfer many assets to Celsius, including wallets containing hundreds of different tokens and valuable NFTs.

Among these assets are the $1.1 million proceeds from a Mutant Ape Yacht Club sale to billionaire Adam Weitsman, currently held in escrow.

Additionally, KeyFi will transfer assets related to DeFi protocols Spartan, Unslashed, Stakehound, and crypto firm Fireblocks.

Liquidation Process

Celsius, as per the settlement, will liquidate the assets over 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. This cap will likely be reached because the assets in question contain several valuable NFTs.

The wallets in question contain a large variety of various crypto tokens, generally in small balances.

Valuable NFTs Included

The wallets contain about $500 worth of Dogecoin and approximately $2,600 worth of USD Coin stablecoins, among many others.

However, the wallets also hold 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.

Market Impact

The liquidation of these NFTs over the next year by Celsius could impact the floor price of the collections.

As NFT demand has primarily dried up over the past year, the market's reaction to the influx of these valuable assets remains to be seen. The settlement marks a significant development in the ongoing saga between KeyFi and Celsius, shedding light on the complex world of crypto asset management and litigation.