Celsius Drags Custody Provider To Court Over $17 Million In Crypto

2022-8-25 20:00

Celsius has been one of the most prominent crypto companies to crash in the recent bear market. The crypto lender had been caught in the crossfire of the LUNA crash and was eventually unable to pay users their deposited funds after making some bad bets. Now, as the company continues to go through the motions of liquidation proceedings, it has dragged a crypto custody provider over millions of dollars in crypto that it owes.

Celsius Sues Prime Trust

On August 23rd, Celsius Network filed a lawsuit in the United States Bankruptcy Court in the Southern District of New York, which is currently in charge of its liquidation proceedings. The filings show that Celsius was dragging Prime Trust to court over $17 million in various digital assets that were being held by the firm.

Apparently, Prime Trust had actually moved to terminate the relationship with Celsius at the time. As expected, the custody company was supposed to return the funds belonging to Celsius, which was in its possession, which it proceeded to do. But according to Celsius, the firm had failed to transfer all of the funds stored with it in its entirety.

In a shocking turn of events, Celsius says that Prime Trust had actually transferred approximately $119 million to them, but there was still an outstanding $17 million, which the custody provider is yet to transfer. Celsius argues that Prime Trust does not hold ownership of the funds. Rather, it was acting in a “ministerial” capacity for the lending platform.

CEL drops to $1.4 | Source: CELUSD on TradingView.com

“Prime Trust purported to terminate its relationship with Celsius and indicated its desire to return the crypto assets it was holding to Celsius,” the filing reads. “Celsius directed Prime Trust to transfer certain crypto assets… Prime Trust complied in part, transferring crypto assets worth approximately $119 million…but Prime Trust has failed and refused to transfer to Celsius approximately $17 million worth of crypto assets.”

The filing shows the amount in various cryptocurrencies that are being held by Prime Trust. It comes out to 398 BTC, 3,740 ETH, 2.2 million USDC, and 196,263 CEL. According to Celsius, the bankruptcy proceedings state that Prime Trust should return these funds to it, but the former has refused to do so.

Basically, the funds were deposited with Prime Trust for holding purposes, and Celsius should’ve been able to reclaim the funds at any time they wished. Celsius is now seeking a complete transfer of the crypto assets that remain with Prime Trust.

Featured image from Watcher Guru, chart from TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0.0095806 (+7.58%)
Объем 24H $0
Изменеия 24h: 2.35 %, 7d: -7.78 %
Cегодня L: $0.0086651 - H: $0.0095806
Капитализация $183.154k Rank 1690
Доступно / Всего 19.117m EMD / 32m EMD

crypto crash celsius bets bad eventually crossfire

crypto crash → Результатов: 126


Bitcoin Cash (BCH) fork, Binance “maintenance” and market dump coincidence?

There were couple of interesting coincidences that were simultaneous with today’s monumental crash of bitcoin and crypto prices. The long raging civil war in the BCH camp that will end in a malignant and bloody split with one of the chains probably dying is certainly one of the plausible explanations for the crash even though […] The post Bitcoin Cash (BCH) fork, Binance “maintenance” and market dump coincidence? appeared first on CaptainAltcoin.

2018-11-15 03:04


XLM Stands Up With Real World Application

Coming in at number 6 as one of the biggest cryptocurrencies in the world is Stellar. Adoption is increasing and the crypto is currently in the green after yesterday’s market crash. A US-based qualified custodian, Prime Trust recently announced that they will support Stellar while it is being actively used as the network of choice to build platforms on due to quick speeds and being trustworthy.

2018-10-12 21:30


Брокер EF Hutton начнет выпускать аналитические отчеты о криптовалютах

Американский брокер EF Hutton объявил о намерении предоставлять своим клиентам аналитическую информацию о криптовалютах. The market moves fast, up 2,000%, then down 80%! The difference between cash or crash could be waiting for you in the EF Hutton Crypto Research Report! Critical, Reliable, Information delivered to your inbox daily. When EF Hutton Talks, People Listen! […]

2018-9-7 13:57


Фото:

Crypto Execs Remains Bullish, Even Amidst Bearish Setbacks

The cryptocurrency market has had its fair share of fluctuation in the past year or two, with the price of crypto assets reaching all-time highs, just to crash by over 70% subsequently. While this near-unpredictable price action has irked some shorter-term investors (speculative traders), two crypto-centric company execs, Hunter Horsley of Bitwise and Spencer Bogart […] The post Crypto Execs Remains Bullish, Even Amidst Bearish Setbacks appeared first on Ethereum World News.

2018-8-21 02:49