Prime Trust agrees to return $17 million to Celsius Network

The bankrupt lender filed a lawsuit against the platform in August for wrongful retention of assets

21.10.2022 - 09:45

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What’s new? Crypto custodian Prime Trust has pledged to return $17 million in digital assets to the bankrupt crypto lender Celsius Network. According to CoinDesk, the decision was made during a court hearing. Back in August, Celsius filed a lawsuit against Prime Trust, alleging that the platform illegally held the company’s assets after terminating the partnership in June 2021. The tokens will be sent to the lender’s special wallet.

CoinDesk’s material

Celsius situation. In June, Celsius froze customer funds, citing unfavorable market conditions, and filed for bankruptcy on July 13. According to court documents in the bankruptcy case, top executives withdrew $41,8 million in cryptocurrency from the company on the eve of the user asset freeze.

In October, members of the crypto community launched a website with information about the company’s depositors. Visitors to Celsiusnetworth.com were asked to enter the amount of their losses, as well as their first and last names to confirm their data. A certain Jacob Benjamin Fite lost the most funds — $40,47 million in bitcoins.

To find out what led to the collapse of Celsius, one of the largest cryptocurrency lenders, see GetBlock Magazine’s feature.

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