Prime Trust Crypto Custodian Enters Chapter 11 Bankruptcy Amid Prolonged Crypto Winter On Monday,
Las Vegas cryptocurrency custodian Prime Trust filed for Chapter 11 bankruptcy protection, marking another setback for the troubled fintech company. In the
August 15th filing, the company stated that
it has 25,000 to 50,000 creditors and expects liabilities of $100 million to $500 million.
And with Prime Core Technologies Inc., Prime Trust LLC, Prime IRA LLC, and Prime Digital LLC listed as entities
, its estimated assets are valued at $50 million to $100 million.
As mentioned in a linked press release,
the company plans to file motions with the Bankruptcy Court to help assess strategic options, including the potential sale of its assets
and continuing operations. However, recent issues
with Nevada Regulators and Creditors might complicate finding a buyer.
With the
Chapter 11 filing aimed at transparency and value for clients,
John Guedry, ex-president
of Bank of Nevada, will lead the restructuring overseen by Judge
Susan Johnson. Prime Trust will operate
as "debtors-in-possession" under the court during this.
