Crypto Collapse: Prime Trust’s Fall From Grace and the Disappearing Wallet Mystery
After Prime Trust filed
for bankruptcy protection, the company’s interim
CEO Jor Law cited excessive spending, losses on the stablecoin terrausd, and problems accessing customer
funds held in cold storage wallets as contributing factors.
In a declaration
filed along with the bankruptcy petition on August 24, Prime Trust’s current CEO J
or Law summarized the company’s slide into insolvency. He stated that prior management engaged in lavish spending despite depressed revenues during the
“crypto winter” of
2022.
In 2019, Prime Trust migrated customer funds to a new digital asset platform by
Fire blocks. Prime Trust’s failure to secure customer funds put them in violation of
Nevada’s trust company regulations. With business declining, the company was unable
to raise sufficient capital to stay solvent.
