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Cryptocurrency lender Celsius is suing infrastructure provider Prime Trust for a $17 million refund of cryptocurrency as part of the Chapter 11 bankruptcy proceedings.
Prime Trust has provided storage and other services to Celsius users in New York and Washington state at the direction of Celsius. The two firms ended their relationship in June 2021, after which, according to Celsius, Prime Trust returned crypto assets worth about $119 million. Celsius claims that Prime Trust has yet to return all the money it owes.
When the relationship ended, Prime Trust disabled Celsius’s access to view its account activity. However, Celsius believes it still owes 398 bitcoins, 196,268 CEL tokens, 3,740 ETH, and $2,261,448. The complaint puts the total value at approximately $17 million.
Now Celsius is requesting a court order that will oblige Prime Trust to transfer additional assets and any other users of the Celsius cryptocurrency that could be transferred to Prime Trust after the termination of the relationship. He also demands damages in the amount to be determined in court.
Celsius began chapter 11 proceedings in July after market turmoil led to liquidity problems that left the firm in bankruptcy.
“Following the commencement of this bankruptcy proceeding, Prime Trust was required under the Bankruptcy Code to transfer all property owned by Celsius that is owned by Prime Trust, Celsius, including these remaining crypto assets, and it should be ordered to transfer them now in accordance with Article 542 of the Bankruptcy Code,” it said.
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