Subsidiary Banq, owned by Prime Trust, a cryptocurrency management company, has filed for Chapter 11 bankruptcy protection in the U.S. District Court for the District of Nevada. Banq is a payments company and was founded in 2020. They provide an SDK software development kit on top of the Prime Trust API to integrate crypto and fiat funding services.
According to the bankruptcy filing, Banq’s total assets were estimated at $17 million and total debt at about $5 million. The decision to file for bankruptcy was made within a week after parent company Prime Trust reached a preliminary acquisition agreement with rival BitGo and is awaiting approval.
Banq and Prime Trust are said to have provided services to Haru Invest, a trading platform based in Korea. Recently, Haru Invest announced to close the deposit and withdrawal portal due to difficulties with an undisclosed service provider. The community is speculating that this unnamed company could be Banq or Prime Trust.
Prime Trust issues have also affected TrueUSD, the issuer of stablecoin TUSD. TrueUSD has announced that the creation of new TUSD through Prime Trust has been paused and is awaiting further notice.
In addition, Prime Trust is also said to be involved in a lawsuit between the US Securities and Exchange Commission (SEC) and Binance. In the lawsuit, this company is mentioned as “Trust Company B”.
“BAM Trading [Binance.US] has entered into an agreement with Trust Company B to provide a service to buy cryptocurrency on Binance.US in USD to customers.”