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Cryptocurrency Custodian, Prime Trust Ends Year-Long Relationship With Cryptocurrency Lender, Celsius
Cryptocurrency custodian Prime Trust will stop providing services to the Celsius app for obtaining cryptocurrencies in the next month. A source familiar with the matter claimed that the mortgage on users’ assets is the main problem. Celsius also stopped its services to UK residents recently.
Prime Trust, a cryptocurrency custodian, will end its year-long relationship with cryptocurrency lending company Celsius in the next 30 days. Prime Trust, however, withheld the actual reason for stopping offering custody services to Celsius in a statement issued Thursday.
According to a spokesperson, Prime Trust noticed suspicious red flags in Celsius’s way of doing business and will begin to isolate Celsius users from its platform. After the 30-day notification period elapses, the custodian will block all Celsius APIs, denying users access to its custodial platform.
The termination letter sent by Prime Trust states that a “variety of business factors” caused the split, ending the successful one-year relationship between the two companies. The statement further says:
“We will not comment beyond that, other than to wish Celsius the best in his endeavors.”
Sources familiar with the matter claim that Prime Trust terminated the Celsius partnership because the latter “ceaselessly mortgages users’ assets,” which it considers dangerous for its business structure. Mortgage means lenders, bankers, and brokers who use posted user assets as collateral for their own benefit. Prime Trust sees this trend as dangerous to its business, hence the cut.
This is not the first time that Celsius has hung on its public image. In April, the cryptocurrency lender suffered a data breach that exposed its users’ data through a third-party mailing list.
In response to the claims, a Celsius spokesperson vehemently denied any assumptions by the lender. The spokesperson explained that they will be leaving the partnership with Prime Trust because the services offered to New York clients are not up to par with Celsius. The statement says:
“Since Celsius began offering its services to New York residents, it has never mortgaged its crypto assets again.”
“Unfortunately, the level of service provided to our New York users through our partnership with Prime Trust was not at the level that Celsius users are used to and therefore we are planning to proceed with an alternative solution for our users. of the state of New York ».
Celsius is moving from the UK
Celsius recently announced that it would be leaving the UK and withdrawing its application for temporary registration with the Financial Conduct Authority (FCA). The cryptocurrency lender declared uncertainty in crypto regulations as the main reason for the exodus.
Celsius will focus its efforts on other countries, especially the US, “Securing licenses and registrations in the country and other jurisdictions that will ensure the long-term viability of Celsius and its community,” its statement read.
Lujan Odera
Lujan is an author and publisher of blockchain and cryptocurrency technology. He has worked in the field of cryptocurrencies and blockchain technology since 2015, which helped him gain enough experience to be the writer he is today. He is known for his simple writing style that allows beginners to understand the field in the simplest way.
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