Celsius Network Files Lawsuit Against Prime Trust Over $17 Million in Crypto

The Drama Unfolds

In a gripping episode worthy of a soap opera, Celsius Network has taken its grievances to court, alleging that Prime Trust has been playing hard to get with a stash of cryptocurrency valued at around $17 million. The lawsuit, officially filed in the U.S. Bankruptcy Court for the Southern District of New York, reflects the growing tensions between crypto firms amidst the ongoing financial turmoil.

A Custodian Conundrum

Celsius claims that when it severed ties with Prime Trust back in June 2021, a nasty surprise awaited: the custodial company held onto a variety of digital assets rather than returning them. Among the treasures stashed away are:

• 398 Bitcoin (BTC)
• 3,740 Ether (ETH)
• 2,261,448 USD Coin (USDC)
• 196,268 Celsius (CEL)

Essentially, they didn’t just forget to return a digital wallet—it’s like losing that Tupperware you borrowed from your mom and never gave back. Cue the drama!

What the Legal Eagles Are Saying

Celsius’s legal team hits hard, invoking the Bankruptcy Code, stating that Prime Trust had no choice but to hand over all properties belonging to Celsius upon filing for bankruptcy. Let’s just say that they’re not taking “no” for an answer. The complaint demands not only an explanation but also the swift transfer of the aforementioned assets.

“Celsius sought for many months to persuade Prime Trust to honor its obligations…”

In other words, it seems like Celsius has been trying for ages to get Prime Trust to play nice. So far, however, their efforts have been met with radio silence.

Financial Fallout and Future Prospects

This lawsuit comes on the heels of Celsius’s Chapter 11 bankruptcy filing, which has reportedly left the cryptocurrency lending platform with debts nearing $2.8 billion—a bit more than a light credit card bill! As of mid-August, the CEL token had experienced an incredible surge of over 4,000%, reaching heights unseen for the past three months. However, like many dramatic rises, it unfortunately nosedived quickly, dropping over 50% since that period.

Prime Trust, Where Art Thou?

In the midst of all this chaos, Cointelegraph reached out to Prime Trust for their take on the matter. As of the last update, their silence could be mistaken for MIA status in an action-packed thriller. Will they respond? Only time will tell.