Prime Trust Officially Filed For Chapter 11 Bankruptcy

Key Points:

• After a long and difficult period, crypto custodian Prime Trust has officially filed for Chapter 11 bankruptcy.
• The list of affected creditors and customers ranges from 25 to 50,000 people.
• Liabilities are between $100-500 million, while the company’s current assets are only about $50-100 million.

After more than a month of stopping all activities and rumors of breaking, on August 14, crypto custody company Prime Trust filed for bankruptcy protection with the US court.

The company believes that initiating Chapter 11 cases will provide a transparent process to balance the interests of its customers and stakeholders,” the company said.

Specifically, according to the bankruptcy filing filed on August 15, the company has between 25,000 and 50,000 creditors with an estimated debt of $100 million to $500 million. Meanwhile, the company’s estimated assets are currently between $50 million and $100 million.

Previously, Nevada’s business regulator issued an order to cease operations of the company on June 21, citing the company’s financial condition as “severely deficient” and unable to make withdrawals. of customer.

Prime Trust was established in 2016 in Las Vegas, Nevada. Last year, Prime Trust raised $107 million in a Series B round from investors Kraken Ventures, FIS Impact Ventures, and Fin Capital.

Prime Trust began providing services to the crypto company in 2018. They served nearly 700 clients in the fintech and crypto sectors last year. However, the platform has recently lost several significant customers, including Binance.US.

In addition, the company also partnered with FTX before the exchange collapsed in November 2022. Earlier this year, Prime Trust cut jobs and suspended business in Texas after withdrawing its application for an in-state money transfer service.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.