- The dispute has begun over Celsius’ assets that are held by Prime Trust.
- In June 2021, Prime Trust ended its partnership with Celsius owing to red flags.
- Prime Trust has to return Bitcoin, Ether, USD Coin and CEL tokens to Celsius.
Celsius Network has sued its former business partner, Prime Trust, to get back a sum of $17 million in crypto that, according to Celsius, is still with the latter.
The matter has reached federal bankruptcy court with a 54-page suit that states the dispute between the two. Going in detail, Prime Trust worked as a crypto custodian for Celsius’ customers who are based in New York and Washington from 2020 to mid-2021. Prime Trust returned $119 million but still holds 398 Bitcoin, 3,740 ETH, 2,261,448 USD coin and 196,268 Celsius.
In its filing, Celsius argued that after the beginning of the bankruptcy proceedings, under the Bankruptcy Code, Prime Trust had to return all the property that belonged to Celsius. Besides the belongings, Prime Trust had to return the remaining crypto assets. However, it hasn’t done the needful until now.
A few days back, everyone was surprised with the news that Ripple Labs might buy bankrupt Celsius’ assets, as Celsius has landed in hot water and is going through legal proceedings for the same.
With a hope to settle things down, Celsius Network began financial restructuring for business stabilization back in July.