Crypto
Cryptocurrency service provider agrees to return $17 million to digital lender Celsius as it reorganizes in bankruptcy
Chapter filings from Celsius and Voyager have raised questions on what occurs to buyers’ crypto when a platform fails.
Rafael Henrique | Sopa Photographs | Lightrocket | Getty Photographs
Crypto service supplier Prime Belief agreed Thursday to return $17 million from crypto lending platform Celsius that was allegedly withheld simply as digital currencies hit their first backside final yr.
Prime Belief, which affords custodial providers for digital property, held $119 million of Celsius’ property when the 2 terminated their contract in June 2021, based on the lawsuit Celsius filed in opposition to Prime Belief in August. Prime Belief “refused to satisfy its obligation” by transferring the $17 million in crypto property when the contract was dissolved, Celsius stated.
Bitcoin seesawed final yr, hitting a report in April 2021 of $63,000 earlier than shedding virtually half of its worth by July. It resurged to a contemporary report of over $64,000 in November and is now buying and selling at round $19,000.
Celsius filed for Chapter 11 chapter safety in July.
Prime Belief agreed at a listening to on the U.S. Chapter Courtroom for the Southern District of New York on Thursday to return the crypto property to settle the lawsuit. These property shall be held in a separate account till the courtroom figures out methods to distribute Celsius’ property.