Prime Trust Files For Bankruptcy
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August 15, 2023 11:30 am
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As the crypto winter drags on, yet another prominent crypto firm has filed for bankruptcy. …
Prime Trust formally filed for Chapter 11 bankruptcy protection in Delaware on Monday.
The firm’s operations revolved around acting as a custodian for digital assets including Bitcoin and major altcoins.
According to the corresponding press release from the bankrupt crypto firm: “The Company believes that the commencement of the Chapter 11 Cases will provide a transparent and value-maximizing process for the benefit of the Company’s clients and stakeholders.”
Amy Castor asks: “Prime Trust files for Chapter 11 protection. Prime is an actual trust company that holds people’s crypto for a fee. How do you go broke in that business?”
Prime Trust files for Chapter 11 protection. Prime is an actual trust company that holds people’s crypto for a fee. How do you go broke in that business?https://t.co/RPIHKNnhRD
— Amy Castor (@ahcastor) August 15, 2023
Pledditor shared more details of the bankruptcy filing: “25,000 to 50,000 creditors, largest unsecured claims are customers. Estimated liabilities between $100 million to $500 million. Estimated assets between $50 million to $100 million.”
Prime Trust Chapter 11 bankruptcy filing: https://t.co/esfnhDmGjK
25,000 to 50,000 creditors
largest unsecured claims are customers
estimated liabilities between $100 million to $500 million
estimated assets between $50 million to $100 million pic.twitter.com/DkFOwvn9Xz— Pledditor (@Pledditor) August 15, 2023
Protos reports:
The firm’s chapter 11 filing said that the move comes following the appointment of a receiver, Nevada Bank’s chief exec John Guedry, as well as a special restructuring committee comprised of three people: Guedry, John Wilcox, and Michael Wyse.
Parrot Capital claimed: “PrimeTrust aka CrimeBust aka home to many criminal clients aka SlugsOfPrimeTrust has filed for bankruptcy.
This outfit was key SBF’s political donation machine, CZ and his money laundering and countless other smaller players. I warned about them long before they blew up.”
#PrimeTrust aka #CrimeBust aka home to many criminal clients aka #SlugsOfPrimeTrust has filed for bankruptcy.
This outfit was key SBF's political donation machine, CZ and his money laundering and countless other smaller players.
I warned about them long before they blew up.🦜 https://t.co/ATTse2oFex
— Parrot Capital 🦜 (@ParrotCapital) August 15, 2023
Blockworks reports that Prime Trust’s troubles all started last year when they were given a cease and desist order in the state of Nevada.
NEWS: Prime Trust has been on the ropes since at least June when it was ordered to cease operations in Nevadahttps://t.co/721MEj573i
— Blockworks (@Blockworks_) August 15, 2023
According to Coin Telegraph:
Prime Core Technologies Inc., Prime Trust, LLC, Prime IRA LLC and Prime Digital, LLC were the entities listed as the entities filing for Chapter 11 relief.
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