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The motion was made with the Eighth Judicial District Court of Nevada, after determining “that Prime is operating in an unsafe and unsound manner and is insolvent,” as alleged in its prior cease-and-desist order from June 21. BitGo CEO Mike Belshe said the move would position the firm “to enhance its best-in-class, trusted solutions and to service the combined customer base.” Welcome to your premier source for the latest in AI, cryptocurrency, blockchain, and AI search tools—driving tomorrow’s innovations today. 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 9 best bitcoin and cryptocurrency plugins for wordpress keenly, hoping to glean lessons for future endeavors. Prime Core Technologies’ decision to channel investments into TerraUSD proved costly, exacerbating its pre-existing monetary challenges.
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- The petition asks the court to appoint a receiver to take over the day-to-day operations of the company and examine its finances, in order to decide whether it should be liquidated or revamped.
- Custody services are offered through BitGo Trust Company, Inc., a South Dakota chartered trust company and other BitGo entities.
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. After the migration to Fireblocks was completed, Prime Trust came under new management, led by Tom Pageler. Nevada has asked a federal court to appoint a receiver for Prime Trust, alleging that the custodian used customer funds to buy cryptocurrencies after losing access to digital wallets containing tens of millions of dollars in assets. The need for safekeeping and storage of cryptocurrencies, particularly for institutional customers and high net worth individuals, has driven digital asset custody to prominence, with many flavors on offer and firms commanding high valuations. Securities and Exchange Commission (SEC), which has put out proposed rulemaking on custody issues.
FundAmerica
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. 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.
Custody services are offered through BitGo Trust Company, Inc., a South Dakota chartered trust company and other BitGo entities. BitGo is not registered with the SEC as an investment advisor or custodian, and does not offer legal, tax, investment, or other advice. Please consult your legal/tax/investment professional for questions about your specific circumstances. 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. The digital-asset firm BitGo Holdings Inc. said it agreed to acquire the parent company of Prime Trust, the crypto custodian for the beleaguered Binance.US trading platform.
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. The information in this press release is not an offer to sell or solicitation of an offer to buy an interest in any investment or for the provision of any investment management or advisory services.
Las Vegas-based Prime Trust raised $107 million in funding midway through 2022, before the crypto bear market really began to bite. But the news of late has not been good, with the firm shedding a third of its workforce at the end of January this year and announcing it would cease operations in Texas where the firm was pursuing a money transmitter license. In January 2021, the firm reintroduced the legacy wallets to customers, the petition said.
Bitcoin Inches Closer to $100K Amid Record $3.4T Crypto Market Cap
Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions. 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 how to sell bitcoin in singapore many speculating that the company in question was Prime Trust.
Abra directed Texas investors to invest into the service through Prime Trust, even though Prime didn’t have a money-transmitter license in the state. To add to the troubles, last year, about half a dozen US states, including Connecticut and Idaho, had issued cease-and-desist or similar orders against Prime Trust for operating without proper money-transmitter licenses. Prime Trust had been the subject of some speculation with people online suggesting the firm was facing bankruptcy. Furthermore, Prime Trust’s recent filings brought to light its acquisition of Ethereum (ETH) assets, valued at approximately $76.4 million. The strategic intent and outcomes of this purchase are yet to be fully comprehended. Additional records also highlight the company’s aggressive spending patterns in the latter part of 2022.
These financial difficulties come in the wake of TerraUSD’s nosedive in May 2022, an event that many market analysts pinpoint as a significant catalyst for the widespread cryptocurrency market downturn last year. Renowned firms, including FTX, Three Arrows, BlockFi, and Voyager Digital, were not spared from the market turbulence, with many either shuttering their operations or initiating bankruptcy filings. 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 provides the most secure and scalable solutions for the digital asset economy, offering new to bitcoin read this first 2021 regulated custody, borrowing and lending, and core infrastructure to investors and builders alike.
Cryptocurrency custody firm BitGo has reached a preliminary agreement to buy Prime Trust, another crypto custody specialist regulated in the state of Nevada, according to two people familiar with the matter. 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. Prime Core Technologies Inc. files for Chapter 11 bankruptcy protection in Delaware, according to a court filing. 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. 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 companies.
Company
The Nevada Financial Institutions Division had ordered Prime Trust to halt all deposits of fiat and digital assets from within the state of custody. Named to CB Insights Blockchain 50 and the Fintech 250 in 2022, Prime Trust is a trust company that offers digital asset infrastructure tools. Prime Trust powers innovation in the digital economy by simplifying the complexity of building with digital assets, making it easier for its customers to build, launch, and scale quickly and compliantly. A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence.
The current and active FundAmerica is an SEC-compliant company offering tools for tech-driven securities offerings. It was acquired by Prime Trust and continues to be a product offering of Prime Trust. Prime Trust was also mentioned in a recent case against Abra, which illegally sold securities to investors.