The cryptocurrency custody company Prime Trust's subsidiary Banq has filed for bankruptcy protection

2023-06-14 15:05:43

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ChainCatcher news, the crypto custody company Prime Trust's subsidiary Banq has filed for bankruptcy protection in the bankruptcy court for the District of Nevada, USA. In the bankruptcy filing, the company cited approximately $17.72 million in assets and $5.4 million in liabilities. At the time of the bankruptcy filing, TrueUSD halted redemptions, and Haru Invest ceased operations citing issues with unnamed partners.

The company also noted in the documents that its former executives transferred $17.5 million in assets to Fortress NFT Group in an "unauthorized transfer," which included trade secrets as well as proprietary information and technology. Banq has sued Fortress for allegedly stealing trade secret information to launch competing NFT platforms Fortress NFT and Planet NFT, further accusing them of engaging in fraudulent activities to cover up their misconduct.

Previous report indicated that earlier this year, Prime Trust laid off a third of its staff. (CoinDesk)

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Prime Trust Banq bankruptcy protection

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