Crypto Custodian Prime Trust Agrees to Return $17M in Tokens to Bankrupt Lender Celsius

The assets will be sent to a designated Celsius wallet, and will await court orders about how they should be distributed.

AccessTimeIconOct 20, 2022 at 8:07 p.m. UTC
Updated Oct 21, 2022 at 2:38 p.m. UTC

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

Crypto custodian Prime Trust agreed to return roughly $17 million in tokens to crypto lender Celsius Network in a bankruptcy court hearing on Thursday.

Celsius had sued Prime Trust in August, alleging that Prime Trust had improperly withheld the tokens when the two terminated their contract in June 2021. The assets, made up of 398 BTC, 196,268 CEL tokens, 3,740 ETH and 2.2 million USDC valued at roughly $17 million, were tied to Celsius’ yield product customers in Washington State and New York. Prime Trust held $119 million of Celsius’ assets at the time the contract was ended.

Celsius filed for Chapter 11 bankruptcy protection in July.

The assets will be sent to a designated Celsius wallet, Prime Trust said Thursday. Next come orders from the court about how the money should be distributed.

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Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.