Celsius calls out Prime Trust in court, alleging firm didn’t turn over $17M in crypto

Celsius calls out Prime Trust in court, alleging firm didn't turn over $17M in crypto

Celsius Network, a crypto lending platform, has filed a lawsuit against Prime Trust for failing to transfer approximately $17 million of cryptocurrency.

The legal team of Celsius filed a lawsuit against Prime Trust on Tuesday at the U.S. Bankruptcy Court, Southern District of New York. They claim that Prime Trust failed to return $17 million in crypto assets in June 2021, when it ended its relationship with the lending company. Celsius claims that Prime Trust was the crypto custodian of New York-based and Washington-based users between 2020 and mid-2021. It returned $119 million in crypto after the end to the business arrangement, but held back some funds: 398 Bitcoin, 3,740 Ether, 2,261,448 USD Coins (USDC), 196,268 Celsiuss (CEL), and 2261,448 USD Coins (USDC).

The filing stated that Prime Trust was required by the Bankruptcy Code, upon the commencement these bankruptcy proceedings, to deliver all property belonging Celsius to Celsius to Celsius. This includes the remaining crypto assets. According to the filing, the order should be made to turn them over now pursuant section 542 of Bankruptcy Code. Celsius also requests specific performance of certain contractual provisions that require Prime Trust to deliver and transmit the crypto assets to Celsius.

The legal team also added:

“Celsius tried for months to convince Prime Trust to fulfill its obligations and to transfer the identified Subject Property to Celsius. It appeared that these efforts were almost rewarded at times. Prime Trust still holds wrongfully subject property that Celsius directed Prime Trust not to release.

Celsius filed for Chapter 11 bankruptcy in July after paying off its debts to Compound (COMP), Aave(AAVE) and Maker. Cointelegraph reported Aug. 16 about Celsius’s crypto lending platform being in danger of running out of money. A report suggested that its debt was closer than $2.8 billion, compared to its bankruptcy filings of $1.2 billion.

Similar: Celsius bankruptcy filings reveal a company in serious trouble

The combined value of the BTC and ETH, USDC and CEL tokens Celsius claimed form Prime Trust was approximately $17.4 Million at the time of publication. Cointelegraph reported that Celsius’ CEL token price had risen more than 4,000% in the three months since June. It reached a high of $3.86 on August 13. The price of Celsius’ CEL token has dropped by more than half since then, to $1.67 on Tuesday.

Cointelegraph reached Out to Prime Trust but was not able to get a reply at the time of publication.

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