Nevada asks to put Prime Trust crypto wallet in receivership
After the migration to Fireblocks was completed, Prime Trust came under new management, led by Tom Pageler. The unfolding scenario underscores the volatile nature of the cryptocurrency realm and the inherent risks businesses face when navigating this digital frontier. As Prime Core Technologies grapples with its financial challenges, the broader industry watches keenly, hoping to glean lessons for future endeavors. This acquisition makes BitGo the first global digital asset company to provide a full suite of solutions for institutions and fintech platforms. 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.
- Prime Core Technologies, parent of Prime Trust, experienced an $8 million financial setback due to investments in TerraUSD, a stablecoin, leading to bankruptcy proceedings in August 2023, highlighting the cryptocurrency market’s volatility.
- BitGo signed a term sheet to acquire the equity of Prime Core Technologies, Inc., the parent company of Prime Trust, bringing business continuity, long-term stability and regulated, secure solutions to valued Prime Trust clients.
- 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.
- First, it is simply viewing the addition as the next expansion of its already-significant network of regulated trust companies.
- When I search google I find prime core has dealings in crypto and I found an article saying Binance.US was connected to them.
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In its press release, BitGo highlighted three key expected benefits of its likely acquisition of Prime Core Technologies. First, it is simply viewing the addition as the next expansion of its already-significant network of regulated trust learn xr development companies. Custodian BitGo dropped its plans to purchase Prime Trust on June 22, the day of Nevada’s cease-and-desist order, alleging a shortfall of customer funds, became known.
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This move was further precipitated by a Nevada court’s intervention, which mandated the appointment of a receiver for Prime what is a rug pull Trust to mitigate potential threats to users and the nascent cryptocurrency sector. This Thursday, BitGo announced it had entered into a non-binding agreement to acquire Prime Core Technologies, Inc.—the parent company of Prime Trust. 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.
BitGo Enters Non-Binding Agreement to Acquire Crypto Custodian Prime Trust
The Nevada Financial Institutions Division had ordered Prime Trust to halt all deposits of fiat and digital assets from within the state of custody. Prime Core Technologies, the parent entity of crypto custodian Prime Trust, disclosed a financial setback of $8 million, largely attributed to investments in the algorithmic stablecoin TerraUSD (USTC). 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. Prime Core Technologies, parent of Prime Trust, experienced an $8 million financial setback due to investments in TerraUSD, a stablecoin, leading to bankruptcy proceedings in August 2023, highlighting the cryptocurrency market’s volatility.
Additional records also highlight the company’s aggressive spending patterns in the latter part of 2022. Specifically, October and November reported steep net losses of $7.4 million and $8.4 million, in that order. The precise implications of these outflows are still being examined, but the interplay between the company’s financial choices and market variances undeniably influenced its present financial state.
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BitGo provides the most secure and scalable solutions for the digital asset economy, offering regulated custody, borrowing and lending, and core infrastructure to investors and builders alike. According to the filing, Prime Trust created a digit wallet in 2018 for holding crypto for its customers. 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.
BitGo’s long track record of credibility, strong balance sheet, and best-in-class operational standards position the company for M&A and business growth amid this crypto winter. Five Minute Finance has influenced how I see finance – I rely on it for insight on the latest news and trends at the intersection of finance and technology. “We handed the reins of a very profitable company,” crypto mining protection Scott Purcell, the former chief executive of Prime Trust, said in an interview with Bloomberg News. Purcell and several members of his team had left to start another venture, Fortress.io.
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. 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.