Celsius Network on Tuesday sued crypto custodian Prime Trust in an attempt to claw back $17 million in crypto that the bankrupt lender alleges its former business partner still holds.
Filed in federal bankruptcy court, the 54-page suit stems from a dispute over assets tied to Celsius’ yield product customers in Washington and New York. Prime Trust held those assets and returned $119 million of the sum to Celsius when the two dissolved their agreement in June 2021, Celsius said.
Read more: Custodian Prime Trust Cuts Ties With Crypto Lender Celsius
“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.
Prime Trust canceled its relationship with Celsius in June 2021 over “red flags,” CoinDesk reported at the time. Prime Trust did not immediately return a request for comment Tuesday.
