Celsius Gains Access to $17 Million in Crypto Funds from Prime Trust

Crypto lending platform Celsius may have gotten a break in its recent bankruptcy case as crypto service provider Prime Trust – which held a long-term partnership with Celsius up through the summer of 2021 – has agreed to give up control of approximately $17 million of the lending company’s digital assets, thus returning them back to executives’ hands.

Celsius Is Getting a Chunk of Money Back

Celsius had filed a lawsuit against Prime Trust back in August. Per a contract established by the two companies, upon the termination of their agreement, Prime Trust had allegedly agreed to retransfer approximately $17 million of the total assets it was holding for Celsius back into the former platform. However, the company had purportedly failed to do so, which meant there was a lot of liquidity Celsius could have potentially gained access to early on had the window been opened properly.

It’s unclear what, exactly, all this means for Celsius, though the company has been in up-and-down mode for the past several months, and perhaps this money could be used to refund the customers that lost access to their savings given the company is working to ensure all customers affected by its withdrawal halt get what they deserve.

It’s been a rough year for Celsius (and crypto in general). The company made people raise their eyebrows in shock and disgust over the summer when it announced that due to ongoing speculation and market volatility, it was halting all withdrawals and people would not be permitted to gain access to their funds.

If this wasn’t bad enough, the company later said it was in the process of filing bankruptcy, which meant all lenders, angry customers, or anybody else that had money tied up in the company could not pursue legal measures against the company. They couldn’t sue, and they couldn’t take heavy action in court to retrieve what they felt was theirs. Thus, people were apparently locked out for good, and it seemed like a lot of customers lost hope that they would ever see their money again.

Trying to Help Its Customers

In a twist of fate, however, the company showed down the line that it still had a heart, and it wasn’t about to throw its customers to the wolves anytime soon. Celsius unveiled a new plan that would see all affected customers get their funds back. While steps associated with the plan have not been released yet, the company has made it adamantly clear that it’s not going to let its customers be wholly affected, and it’s seeking to ensure customers can soon receive their funds back with clear ease.

Following this announcement, Alex Mashinsky – the CEO of the platform – announced he was stepping down from his post as a means of allowing someone more experienced to step in and aid in the firm’s IOU plans.

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