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Top Cryptocurrency News: Celsius Calls Out Prime Trust in Court, Alleging the Firm Failed to Turn Over $17M in Crypto

24-Aug-2022 By: Shikha Jha
Top Cryptocurrency N

Celsius Network, a cryptocurrency lending platform, has filed a lawsuit alleging that custodian Prime Trust failed to turn over approximately $17 million in cryptocurrency.

On Tuesday, Celsius' legal team filed a lawsuit against Prime Trust in the United States Bankruptcy Court for the Southern District of New York, alleging the company failed to repay $17 million in crypto assets after it ended its connection with the lending firm in June 2021. 

According to Celsius, Prime Trust served as a crypto custodian for New York and Washington-based customers from 2020 to mid-2021, returning $119 million in crypto after the business partnership ended but holding some funds: 398 Bitcoin, 3,740 Ether, 2,261,448 USDC, and 196,268 Celsius.

The legal team went on to say that Celsius has been trying for months to persuade Prime Trust to follow its responsibilities and transfer identified Subject Property to Celsius. At times, it looked like such efforts were on the verge of being rewarded. However, Prime Trust continues to withhold Subject Property that Celsius has asked Prime Trust to release.

In July, Celsius filed for Chapter 11 bankruptcy after paying off obligations owing to Compound (COMP), Aave (AAVE), and Maker (MKR). As  CoinGabbar reported on August 16 that the crypto lending platform was on course to run out of money by October, with a report claiming the company's debt was closer to $2.8 billion than the $1.2 billion deficit claimed in its bankruptcy petition.

At the time of writing, the total value of the BTC, ETH, USDC, and CEL tokens Celsius claimed from Prime Trust was around $17.4 million. Despite the bankruptcy proceedings, the price of Celsius' CEL coin has risen more than 4,000% since June, attaining a three-month high of $3.86 on August 13, according to sources data. However, the price has decreased by more than half since then, reaching $1.42 on Tuesday.

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