Cryptocurrency service supplier agrees to return $17 million to digital lender Celsius because it reorganizes in chapter – CNBC

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 gives custodial providers for digital belongings, held $119 million of Celsius’ belongings when the 2 terminated their contract in June 2021, in response to the lawsuit Celsius filed against Prime Trust in August. Prime Belief “refused to meet its obligation” by transferring the $17 million in crypto belongings when the contract was dissolved, Celsius stated.

Bitcoin seesawed final yr, hitting a file in April 2021 of $63,000 earlier than dropping virtually half of its worth by July. It resurged to a contemporary file 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 Court docket for the Southern District of New York on Thursday to return the crypto belongings to settle the lawsuit. These belongings will likely be held in a separate account till the court docket figures out find out how to distribute Celsius’ belongings.