Prime Trust, LLC, has found itself at the centre of a complicated financial and legal scenario. On August 14, 2023, the business and a few of its affiliates voluntarily petitioned the United States Bankruptcy Court for the District of Delaware for Chapter 11 bankruptcy protection.
The filing is the result of a sequence of occurrences that started in early June 2023, when rumours about Prime Trust’s bankruptcy started to spread. Nevada’s Department of Business and Industry issued a stop and desist order on June 21 due to the company’s “critically deficient” financial state and unable to honour client withdrawals, which exacerbated the problem.
When BitGo, a digital asset custodian, stated on June 22 that it was terminating its takeover of the firm, Prime Trust’s problems only became worse. Banq, the payments division of Prime Trust, filed for bankruptcy in the US a few days before to this ruling, reporting $17.72 million in assets…
