Celsius Company in the Bankruptcy Process Claims It Has Large Amounts of Creditors and Sued This Company!

Cryptocurrency Credit institution Celsius is suing infrastructure provider Prime Trust for the return of $17 million worth of cryptocurrencies as part of the company’s Chapter 11 bankruptcy proceedings.

Prime Trust provided custody and other services for the company’s users in New York and Washington state, at Celsius’s direction.

The two firms ended their relationship in June of 2021, at which point the company said that Prime Trust had returned approximately $119 million worth of crypto assets. Currently, the company argues that Prime Trust has not yet returned all the money it owes.

Celsius Claims About $17M In Credit From Prime Trust Company

At the time of the end of the relationship, Prime Trust blocked Celsius from accessing his account activity. However, the company still bitcoin, 196,268 CEL tokens, 3,740 ETH and 2,261,448 USDC He believes he is a creditor. The complaint states that the total value is approximately $17 million.

Celsius is now seeking a court order that will compel Prime Trust to surrender additional assets and other cryptocurrencies that the company’s users may have transferred to the Prime Trust after the relationship ended. In addition, an amount of compensation to be determined at the hearing is requested.

The company entered Chapter 11 bankruptcy in July after market fluctuations caused liquidity problems, causing the firm to declare bankruptcy.

The following statements were included in the lawsuit application:

“After the commencement of these bankruptcy proceedings, the Prime Trust is obliged, pursuant to the Bankruptcy Act, to hand over to the company all property belonging to Celsius in the possession of the Prime Trust, including these remaining crypto-assets, and to surrender them now pursuant to section 542 of the Bankruptcy Act. must be ordered.”

*Not investment advice.