08-24-2022 icon

Troubled Celsius Protocol Charges Prime Trust Over $17M Crypto Repayment

By Lucy Adegbe

A Tuesday report revealed that the digital currency lender Celsius Network filed a lawsuit against digital asset innovator Prime Trust over an alleged $17million worth of cryptocurrency that the latter is still in possession of. 

The 54-page filing is a result of the previous alliance between both parties in which Prime Trust was a custodian to various Celsius customers’ properties in the New York and Washington region. 

According to Celsius’ statement, Trust which was in the custody of these digital properties gave back $119million worth to Celsius after both parties broke up their contract in June 2021.

However, Celsius Network, which recently opted for legal liquidation protection against creditors to which it is indebted, has claimed that the custodian is yet to agreeably complete its end of the bargain. This bargain includes a refund of its 398 BTC, 3,740 ETH, 2.2 million USDC, and over 196,268 CEL Coin which totaled to a monetary value of about $17 million. 

Celsius further noted in its suit, “Upon the commencement of the bankruptcy proceedings, Prime Trust was obligated under the bankruptcy code to deliver all property belonging to Celsius that is in the Prime Trust’s possession to Celsius, including these crypto assets, and should be ordered to turn them over now under section 542 of the Bankruptcy Code.”

Reports from last year published that the custodian company had ended its contract with the loan protocol because of the raised worries about the platform’s pattern of “endlessly re-hypothecating assets.”