ChainCatcher news, according to CoinDesk, the crypto custody company Prime Trust has notified its employees that it may lay off 62 people in the next two months. Previously, in bankruptcy filing documents, Prime Trust disclosed that it has 70 full-time employees.

ChainCatcher news, according to Decrypt, Prime Trust CEO Jor Law stated that the company had used the 98f hardware wallet to store tokens and transferred its wallet to a system operated by Fireblocks in 2019, but did not realize that the migration from the old wallet to the new system was incomplete, nor did they realize that customers were still depositing funds into the 98f wallet address.It was only when a user made a large ETH withdrawal that Prime Trust became aware of these errors, but the hardware wallet had already been discarded, containing over $45 million worth of ETH. To this day, Prime Trust still cannot access the 98f wallet.

ChainCatcher news, Prime Trust's parent company Prime Core Technologies reported that the company lost $6 million of client funds and $2 million of financial funds due to its investment in TerraUSD. This investment, along with increased expenditures in October and November 2022, is one of the reasons for its bankruptcy filing.Previous report, Prime Trust has filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in the Delaware bankruptcy court and appointed John Guedry as the company's custodian, who will continue to manage its business as a debtor in possession under the supervision and guidance of a special committee.

ChainCatcher news, cryptocurrency custodian Prime Trust has filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in the Delaware bankruptcy court, appointing John Guedry as the company's custodian, and appointing John Guedry, John Wilcox, and Michael Wyse as the sole members of the special restructuring committee, which will continue to manage its business as a debtor in possession under the supervision and guidance of the special committee.Previous report indicated that a court in Nevada ordered Prime Trust to cease all activities, and former employees of Prime Trust revealed that the company might undergo massive layoffs, with the layoff rate potentially reaching 75%.

ChainCatcher news, according to CoinDesk citing former employees of Prime Trust, the cryptocurrency custody company Prime Trust has recently been ordered to cease operations, and the company may undergo large-scale layoffs, with the layoff rate potentially reaching 75%.Previously, a court in Nevada ordered Prime Trust to stop all activities due to insufficient customer funds and allegations that the company used customer funds to meet withdrawal requests.

ChainCatcher news, CoinDesk reports that the Eighth Judicial District Court of Nevada has approved the entry of cryptocurrency custodian Prime Trust into bankruptcy management. Previously, Nevada had ordered the company to cease all activities and accused it of using customer funds to meet withdrawal requests.According to documents submitted to the Financial Institutions Division (FDI) of the Nevada Department of Business and Industry, Prime Trust's overall financial condition has severely deteriorated, placing the company in an unsafe or unsound trading situation, and its business will be taken over by Nevada Bank President John Guedry.Previous report states that in June of this year, Nevada regulators announced they had applied to take over Prime Trust and froze all its operations. Another cryptocurrency custodian, BitGo, terminated its acquisition of Prime Trust. It is reported that Prime Trust owes customers $85.67 million in fiat and $69.509 million in digital currency, but only holds $2.904 million in fiat and $68.648 million in cryptocurrency. Regulators also accused Prime Trust of using funds from customer accounts to meet withdrawal requests from old wallets.

ChainCatcher news, Bitcoin investment application Swan Bitcoin quickly withdrew all assets from Prime Trust weeks before its collapse, and all Swan customers' assets are now held by cryptocurrency custodian Fortress. Similarly, the Bitcoin Lightning wallet Strike also successfully withdrew its custodial funds, which are now managed internally.However, one of Prime Trust's clients, the Bitcoin investment app Coinbits, failed to withdraw in time and stated, "There are still many unknowns, but we intend to fight for those members who have locked funds in Prime Trust." Additionally, it was mentioned that a petition from Nevada regulators seems to indicate that Prime Trust still has enough Bitcoin to honor its members' balances, and they will make every effort to recover these assets. Currently, most features of the Coinbits App are offline, and new solutions are being developed to restore its services as soon as possible.Previous news, Nevada regulators have applied to take over Prime Trust, stating that it is unable to pay its debts. (Source link)

ChainCatcher news, the blockchain data monitoring platform Arkham stated in its social media analysis that the address starting with "0xf4E11" is likely a legacy wallet of Prime Trust, with assets valued at over 45 million dollars, but currently, Prime Trust cannot access this address.On-chain data shows that the last outflow from the address starting with "0xf4E11" was in January 2020, with funds flowing to another Prime Trust custody wallet, amounting to 527,000 TUSD. Until early 2020, the address starting with 0xf4E11 regularly received inflows. At that time, the Nevada FID indicated that Prime Trust had migrated the address.From January 2021, the address starting with 0xf4E11 began to receive inflows again regularly. The court documents from FID at that time stated that in January 2021, Prime Trust reintroduced the old address for customer use, but it wasn't until December 2021 that they realized the old address was actually inaccessible.Previous report, DB NEWSWIRE tweeted that the Nevada Financial Institutions Division (FID) stated that Prime Trust lost access to the old wallet in 2021 and used customer assets to repurchase cryptocurrencies. Prime Trust owes customers 85.67 million dollars in fiat and 69.509 million dollars in digital currency, but currently holds only 2.904 million dollars in fiat and 68.648 million dollars in cryptocurrency. (Source link)

ChainCatcher news, Coinbase product manager Conor Grogan tweeted that, according to Arkham data, the Prime Trust wallet holds a total of $69.71 million in digital assets, of which the holding of AUDIO is $61.51 million, accounting for 88% of its digital currency assets.Previously, news reported that Nevada regulators required Prime Trust to undergo bankruptcy management, stating that it was unable to meet customer withdrawal requests, with Prime Trust owing its customers over $85 million in fiat currency and over $69 million in digital currency. (source link)

ChainCatcher news, according to The Block, the Financial Institutions Division (FDI) of Nevada has announced that it has requested a court in Nevada to appoint a receiver to take over the daily operations of Prime Trust and thoroughly examine its financial situation to determine the best options for Prime's clients, either to restructure and return the company to private management or to liquidate it. The regulator stated that Prime's operations are unsafe and unsound, and the company lacks the funds to pay customer deposits and cannot continue cryptocurrency custody services.Previous news, Prime Trust lost access to old wallets as early as 2021 and used customer assets to repurchase cryptocurrencies. Prime Trust owes customers $85.67 million in fiat and $69.509 million in digital currency, but currently holds only $2.904 million in fiat and $68.648 million in cryptocurrency. (The Block)

ChainCatcher news, DB NEWSWIRE tweeted that the Financial Institutions Division (FID) of Nevada, USA, stated that Prime Trust lost access to old wallets in 2021 and used customer assets to repurchase cryptocurrencies. Prime Trust owes customers $85.67 million in fiat and $69.509 million in digital currency, but currently holds only $2.904 million in fiat and $68.648 million in cryptocurrency.Previous news, on June 23, the Nevada Financial Institutions Division (FID) ordered Prime Trust to cease all activities that violate Nevada state regulations, claiming that the company's "overall financial condition has severely deteriorated," with operations facing huge deficits and potentially being insolvent. (Source link)

ChainCatcher news, according to CoinDesk, cryptocurrency custody company BitGo still has acquisition plans after abandoning its acquisition of competitor Prime Trust. CEO Mike Belshe mentioned, "We have (other acquisitions) that are not completed, and I haven't been able to announce them, but I believe there will be consolidation in this space within the next 6 months."Previously, BitGo terminated its acquisition of Prime Trust amid speculation that the target would go bankrupt. Reports emerged that Prime Trust was ordered by the Nevada Department of Financial Institutions to cease deposits and withdrawals. (Source link)

ChainCatcher news, according to on-chain data, a whale address starting with 0xf28 deposited 7.5 million USDC as collateral on Aave yesterday, borrowed 4 million TUSD, and immediately exchanged all TUSD for USDC through 1inch. Previously reported, TrueUSD announced on June 10 that it has temporarily halted the minting of TUSD through Prime Trust, pending further notice.Prime Trust announced yesterday that it received a regulatory order from Nevada to stop all fiat and cryptocurrency deposits and withdrawals. In addition, cryptocurrency custody company BitGo announced yesterday that it has decided to terminate the acquisition of Prime Trust. (source link)

ChainCatcher news, according to CoinDesk, the Nevada Department of Business and Industry stated on Thursday that the crypto custody company Prime Trust has a "shortfall of customer funds" and is unable to meet all withdrawal requests for this month. The Nevada Financial Institutions Division (FID) ordered Prime Trust to cease all activities that violate Nevada state regulations, claiming that the company's "overall financial condition has severely deteriorated," with significant operational deficits and potential insolvency. The Nevada FID indicated that Prime Trust may not be able to continue operating in a reasonable manner and has violated its fiduciary duties.It is reported that as of the end of March 2023, Prime Trust reported shareholder equity of over negative $12 million. Prime Trust can request a hearing within 30 days of the order being issued; otherwise, the cease-and-desist order will be considered a final order.ChainCatcher previously reported that the crypto custody company BitGo announced the termination of its acquisition of Prime Trust. (source link)

ChainCatcher news, cryptocurrency custody company BitGo announced its withdrawal from the tentative agreement to acquire Prime Trust. Industry insiders pointed out that Prime Trust's deposit issues have persisted, undermining the completion of the acquisition.Previously, BitGo announced that it had signed a non-binding term sheet to acquire 100% of the equity of Prime Trust's parent company, Prime Core Technologies. (Source link)

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)

ChainCatcher news, the dollar stablecoin TrueUSD tweeted that the team is working to restore TUSD minting on Prime Trust and will provide updates immediately when there is new progress.Previously, TrueUSD stated that it has temporarily halted TUSD minting through Prime Trust, pending further notice. (Source link)

ChainCatcher news, two insiders said that to cut costs, the crypto custodian Prime Trust laid off one-third of its staff on Tuesday. The layoffs primarily affected employees in the communications and compliance departments.Previous report indicated that Prime Trust has personal financial ties with FTX executives, with SBF holding tens of millions of dollars in assets at the company and making donations to political campaigns. Last week, Prime Trust announced it would suspend its business operations in Texas by January 31, after the company withdrew its application for a money transmission license (MTL) in the state. (CoinDesk)

ChainCatcher news, according to CoinDesk, the president and CEO of the crypto custodian Prime Trust, Tom Pageler, has been fired this week. According to his LinkedIn profile, Pageler has been at the helm of Prime Trust since January 2021, and the reason for his dismissal is currently unclear. Prime Trust issued a statement indicating that Jor Law will serve as the interim CEO and that Pageler has been adjusted to a new role.It is reported that Prime Trust has personal financial ties with FTX executives, with SBF holding tens of millions of dollars in assets at the company and making donations for political campaigns. (CoinDesk)