It than used the digital asset platform Fireblocks to store all crypto assets held in custody, though the original wallet continued to exist and was marked as inactive. After the migration to Fireblocks was completed, Prime Trust came under new management, led by Tom Pageler. Nevada has asked a federal court to appoint a receiver for Prime Trust, alleging that the custodian used customer funds to buy cryptocurrencies after losing access to digital wallets containing tens of millions of dollars in assets. The need for safekeeping and storage of cryptocurrencies, particularly for bitcoin has just halved again 2020 institutional customers and high net worth individuals, has driven digital asset custody to prominence, with many flavors on offer and firms commanding high valuations. Securities and Exchange Commission (SEC), which has put out proposed rulemaking on custody issues.

• When I search google I find prime core has dealings in crypto and I found an article saying Binance.US was connected to them.
• Prior to the announcement, rumors have been circulating that a cryptocurrency custodian is close to filing for bankruptcy with many speculating that the company in question was Prime Trust.
• On 15 August 2023, the company officially entered bankruptcy proceedings in the U.S., citing liabilities hovering between $100 million to $500 million and a creditor count ranging from 25,000 to 50,000.
• The announcement, stemming from an August 24 filing with the United States Bankruptcy Court for the District of Delaware, unveiled that these losses were partitioned into $6 million from client funds and $2 million from treasury coffers.
• Please consult your legal/tax/investment professional for questions about your specific circumstances.

As US debt hits $36 trillion, about 1 in 5 dollars the government spends repays investors for borrowed money

BitGo also processes approximately 20% of all global Bitcoin transactions by value. Prime Trust once played a significant role in the infrastructure of crypto markets, holding funds on behalf of companies like FTX, Binance.US and Celsius Network. Custodians typically hold dollars and digital assets on behalf of customers, putting the funds in their own accounts. The firms are meant to be among the safer parts of the financial system, not engaging in risky activities. The 30-page receivership petition filed Monday demands an immediate impounding of all assets of Las Vegas-based Prime Trust, as well as its documents and records. It also asks the court to enjoin Prime, including its officers and agents, from touching any of the company’s funds.

Deep News & Analysis

BitGo has expanded from offering wallets to providing a full-suite solution that lets clients hold assets safely and then put them to work. BitGo launched BitGo Trust Company in 2018, providing fully regulated, qualified cold storage to complement BitGo Inc’s original hot wallet solution. In 2020, BitGo launched BitGo Prime, which allows its clients to trade, borrow, and lend. Moreover, BitGo also provides access to DeFi, staking, NFT wallets, and beyond, and serves as the world’s sole custodian for WBTC, or wrapped Bitcoin.

On 15 August 2023, the company officially entered bankruptcy proceedings in the U.S., citing liabilities hovering between $100 million to $500 million and a creditor count ranging from 25,000 to 50,000. This move was further precipitated by a Nevada court’s intervention, which mandated the appointment of a receiver for Prime Trust to mitigate potential threats to users and the nascent cryptocurrency sector. Palo Alto, California-based BitGo said in a statement that it signed a non-binding term sheet to acquire 100% of the equity of Prime Core Technologies Inc. Despite its reputation, Prime Trust suffered a series of setbacks in recent months. More recently, it has been named in SEC’s lawsuit against Binance for the services it provided for the exchange’s US affiliate. But in late 2022, Jor Law — a long-time board member of Prime Trust — was appointed as the company’s new CEO to turn the company around.

Published in Official BitGo Blog

Prime Trust wasn’t able to access the legacy wallets on or about December 2021. After the publication of this article, BitGo confirmed in a blog post that it had signed a term sheet to acquire Prime Core Technologies, Prime Trust’s parent company. This acquisition makes BitGo the first global digital asset company to provide a full suite of solutions for institutions and fintech platforms.

Around December 2021, Prime discovered that it was unable to access some of its wallets where it stored cryptocurrency, according to the petition. From December 2021 to March 2022, Prime purchased additional digital currency using what is responsive design customer money from its omnibus customer accounts to satisfy withdrawals. According to the filing, Prime Trust created a digit wallet in 2018 for holding crypto for its customers.

The Nevada Financial Institutions Division had ordered Prime Trust to halt all deposits of fiat and digital assets from within the state of custody. Named to CB Insights Blockchain 50 and the Fintech 250 in 2022, Prime Trust is a trust company that offers digital asset infrastructure tools. Prime Trust powers innovation in the digital economy by simplifying the complexity of building with digital assets, making it easier for its customers to build, launch, and scale quickly and compliantly. A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence.

I received a random email from a prime core technologies stating they were filing for bankruptcy. When I search google I find prime core has dealings in crypto and I found an article saying Binance.US was connected to them. The petition asks the court to appoint a receiver to take over the day-to-day top 90+ aws interview questions and answers for 2022-23 software development operations of the company and examine its finances, in order to decide whether it should be liquidated or revamped.

The combination of Prime Trust and BitGo would be a significant enhancement for the industry.No other company will have the breath of product and services nor depth of experience that this combined company would have. We are excited to offer our world-class infrastructure within a broader ecosystem and revolutionize the future of crypto. Founded in 2013, BitGo pioneered the multi-signature wallet and later built TSS to improve upon other companies’ MPC offerings. Between multi-sig and TSS, BitGo offers the safest technology on the market and safeguards over 600 tokens across a wide variety of blockchains.