Celsius Network sues Prime Trust over its assets

Bankrupt crypto lender Celsius Network has reportedly sued its former business partner, crypto custodian Prime Trust, demanding the return of $17 million in crypto that the former says the latter still holds.

Celsius Network alleged that Prime Trust retained some crypto assets after returning $119 million in assets to Celsius when the two organizations ended their business partnership in June 2021, according to a CoinDesk. report Tuesday (August 23).

“At the commencement of these bankruptcy proceedings, Prime Trust was obligated under the bankruptcy code to deliver all property belonging to Celsius that is in the possession of Prime Trust to Celsius, including these remaining crypto assets, and should be ordered to deliver them now pursuant to Section 542 of the Bankruptcy Code,” Celsius said in a bankruptcy deposit.

PYMNTS has requested comment from Prime Trust.

Celsius Network filed for Chapter 11 bankruptcy on July 13, a month after freezing customer accounts, PYMNTS reported at the time.

Read more: Crypto Lender Celsius Files for Chapter 11 Bankruptcy

The company has been in trouble offering big returns to crypto depositors while providing large loans backed by insufficient collateral, leaving the company vulnerable to a market downturn.

It froze withdrawals, trades and transfers in June, after a board member said it was necessary to avoid a rush and losses for customers.

More recently, Celsius Network’s chief financial officer said Friday (August 19) that the company likely has enough funds to keep its operations afloat until the end of the year.

See also: Today in Crypto: Celsius Can Run Through 2022, Says CFO; “Pig Butcher” Scammers Fatten Their Victims

During a call with creditors, CFO Chris Ferraro said Celsius expects “positive cash flow in early 2023,” according to a CoinDesk report. The report noted that the company had previously indicated that it would run out of cash by November.

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