Celsius receives cash from Prime Trust as fraudsters target its customers


As if the protracted bankruptcy wasn't enough, court documents reveal a new wrinkle in the story of defunct crypto lender Celsius: fraudsters posing as lawyers participating in its Chapter 11 proceedings. 

 Fraud is the latest headache for Celsius, which suspended withdrawals and related customer operations in July, citing "extreme market conditions." 

 "Our ultimate goal is to stabilize liquidity and restore withdrawals, [exchanges] and account-to-account transfers  as soon as possible," the company wrote in a blog post at the time. "There is a lot of work ahead as we consider different options, this process will take time and there may be delays." 

 In the latest setback, Celsius' attorneys  said in a filing earlier this week that several unidentified potential malicious actors contacted creditors posing as attorneys for Kirkland and Ellis. The attempts, mostly via email, appear to be designed to trick customers  whose accounts have been frozen for months into handing over sensitive information  to gain access to their accounts. 
 emails contained links to shared spreadsheets that encouraged recipients  to share their personal information. Law360, an industry publication, was the first to report news of the scam. It is unclear whether any of these attempts were successful, at least in the eyes of the hackers. 
 Prime Trust settlement moves forward - with a twist But it's not all doom and gloom for Celsius. A proposed settlement with Prime Trust — the crypto custodian that agreed to return about $17 million of its assets to the bankrupt company — is moving forward.

 According to court documents reviewed by Blockworks, that was just the beginning. The amended settlement proposal stated that Prime Trust also owed Celsius 7.4 bitcoins, 1,145.5 CEL tokens, 248.5 ethers and approximately $364,000 in the stablecoin USDC. 

 Assets expected to arrive if both parties settle in bankruptcy court would not fill the role of Celsius - a hundred million dollars deep. But each piece moves the needle little by little to get money back from customers to creditors - which Celsius has always considered its top priority. 

 A spokesperson for Celsius did not respond to a request for comment, and a spokesperson for Prime Trust declined to comment, citing pending litigation. 
 In the meantime, visitors to the Celsius website will receive a pop-up informing them of the pending bankruptcy - and pointing out the obvious: This is no longer normal - and a link to another website designed specifically to inform the proceedings. .

 But the Digital Asset Lenders career page still says Celsius  positions are "open in all departments" and "growing rapidly."

🌐  source

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