Market Analysis Report (24 Aug 2022)

On Tuesday, bankrupt crypto lender, Celsius Network, sued custodian Prime Trust in an attempt to recoup $17m in crypto that Celsius claims its former business partner still holds. Prime Trust reportedly terminated its relationship with Celsius in June 2021 over “red flags.

Via the 54-page suit, which was filed in federal bankruptcy court, Celsius is looking to claim control of assets that are tied to users who used Celsius’ yield product in either Washington or New York. According to Celsius, Prime Trust returned $119m of the total to Celsius when the agreement between the two firms was dissolved in June 2021.

Celsius also alleges that Prime Trust “has refused to fulfil its obligations to transfer” 398 BTC, 196,268 CEL tokens, 3,740 ETH, and 2.2 million USDC that in total are valued at $17 million.

“Upon the commencement of these bankruptcy proceedings, Prime Trust was obligated under the Bankruptcy Code to deliver all property belonging to Celsius that is in Prime Trust’s possession to Celsius, including these remaining crypto assets, and should be ordered to turn them over now pursuant to section 542 of the Bankruptcy Code,” Celsius argued in the filing.