Cryptocurrency service provider agrees to return $17 million to digital lender Celsius as it reorganizes in bankruptcy
Crypto service provider Prime Trust agreed Thursday to return $17 million from crypto lending platform Celsius that was allegedly withheld just as digital currencies hit their first bottom last year.
Prime Trust, which offers custodial services for digital assets, held $119 million of Celsius' assets when the two terminated their contract in June 2021, according to the lawsuit Celsius filed against Prime Trust in August. Prime Trust "refused to fulfill its obligation" by transferring the $17 million in crypto assets when the contract was dissolved, Celsius said.
Bitcoin seesawed last year, hitting a record in April 2021 of $63,000 before losing almost half of its value by July. It resurged to a fresh record of over $64,000 in November and is now trading at around $19,000.
Celsius filed for Chapter 11 bankruptcy protection in July.
Prime Trust agreed at a hearing at the U.S. Bankruptcy Court for the Southern District of New York on Thursday to return the crypto assets to settle the lawsuit. Those assets will be held in a separate account until the court figures out how to distribute Celsius' assets.