Suffering from customer fund difficulties, Prime Trust has reluctantly declared bankruptcy. On August 15th, Prime Trust officially filed for Chapter 11 bankruptcy in Delaware. Currently, they have between 25,000 to 50,000 creditors, with estimated debts ranging from $100 million to $500 million USD. Meanwhile, the company’s assets are estimated to be only between $50 million to $100 million USD.
Regarding the bankruptcy filing, the company stated it as a necessary step while providing a transparent process to balance the interests of customers and Prime Trust’s stakeholders.
Prime Trust is a custodial company that began offering digital asset services in 2018. To date, they’ve served nearly 700 customers in the Fintech and Crypto sectors, including Binance US and FTX.
Earlier, on June 23rd, Prime Trust announced the suspension of deposits and withdrawals after receiving a request from the Nevada Financial Institutions Division. The company also sent notifications to partners, notably payment platform Stably. Stably faced some complications as well. However, the payment platform clarified that it remained unaffected.