Celsius takes Prime Trust to court, alleging company failed to hand over $17m in crypto

"Prime Trust was obligated under the bankruptcy code to deliver all property belonging to Celsius [...] including these assets remaining cryptographic assets," said Celsius' legal team.

Crypto lending platform Celsius Network has filed a lawsuit claiming that custodian Prime Trust failed to deliver approximately $17 million worth of cryptocurrency.

In a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York, Celsius' legal team filed suit against Prime Trust, alleging the company failed to return $17 million in crypto assets in June 2021 when she ended her relationship with the lending company. According to Celsius, Prime Trust acted as a crypto custodian for New York and Washington-based users from 2020 to mid-2021, returning $119 million in crypto after the business deal ended, but withholding some funds : 398 Bitcoin (BTC), 3,740 Ether (ETH), 2,261,448 USD Coin (USDC) and 196,268 Celsius (CEL).

"At the outset of these bankruptcy proceedings, Prime Trust was obligated under the bankruptcy code to return all property belonging to Celsius to Prime Trust, including these remaining crypto assets, and is expected to be ordered to deliver them now pursuant to Section 542 of the Bankruptcy Code," the filing states. "Alternatively, Celsius seeks specific performance of certain contractual terms obligating Prime Trust to deliver and transfer the Crypto Assets to Celsius."

The legal team added:

“Celsius sought for many months to persuade Prime Trust to honor its obligations and transfer the identified affected property to Celsius. To this day, Prime Trust continues to wrongfully withhold the Object Property that Celsius requested Prime Trust release."

In July, Celsius