On June 22, BitGo announced the termination of its acquisition of Prime Trust, just two weeks after announcing its plans to acquire the platform.
“After extensive efforts to find a way forward for Prime Trust, BitGo has made the difficult decision to terminate the acquisition of Prime Trust. This is a challenging decision, and BitGo remains committed to its mission of providing trust in the digital asset space.”
The reasons behind BitGo’s decision to cancel the previously agreed-upon acquisition are still unclear.
Following this, Prime Trust also announced the temporary suspension of deposits and withdrawals, as well as the postponement of certain business expansion activities, citing force majeure reasons.
As a result of Prime Trust’s situation, the payment platform Stably has also faced difficulties and had to suspend some of its services.
TrueUSD (TUSD), the stablecoin favored by Binance recently, has announced on Twitter that they will temporarily suspend the TUSD issuance service through Prime Trust until further updates are provided.
On June 14, 2023, Banq, a subsidiary of Prime Trust, filed for bankruptcy protection with the Nevada District Court, USA, following allegations of mismanagement and legal troubles. In its bankruptcy documents, Banq listed $17.72 million in assets and $5.4 million in outstanding debts.
Prime Trust, a company providing services to the crypto industry, has reportedly served nearly 700 customers in the fintech and crypto sectors. Despite recent rumors of impending bankruptcy, Prime Trust received over $100 million in funding in June 2022.