Nevada

Prime

Read

/send

TrueUSD

<div class="protos"> 
 <div> 
  <div> 
   <div> 
    <p>Crypto custodian Prime Trust and several of its affiliates have filed for chapter 11 bankruptcy after months of trouble.</p> 
    <p>In a statement, the Nevada-based <a rel="noopener noreferrer nofollow" title="custodian" href="https://thebittimes.com/tag/custodian.html">custodian</a> that once served <a rel="noopener noreferrer nofollow" title="Binance" href="https://thebittimes.com/tag/binance.html">Binance</a> US said that it intends to file several motions in order to evaluate “all strategic alternatives, including potentially a sale of … assets and operations.”</p> 
    <p>In June, shortly after Binance US was sued by the Securities and Exchange Commission (SEC), Prime Trust customers reported slow withdrawals. The regulator had requested a temporary retraining order to freeze over $2 billion dollars of Binance US assets. In response to growing concerns, Prime Trust’s customers like Swan Bitcoin migrated customer assets away from the custodian, essentially causing a bank run situation.</p> 
    <p><a rel="noopener noreferrer nofollow" title="Prime Trust" href="https://thebittimes.com/tag/prime-trust.html">Prime Trust</a> was forced to halt withdrawals and deposits after receiving cease and desists from the US states it operated in, including its home state Nevada. By June 28, the <a rel="noopener noreferrer nofollow" title="custodian" href="https://thebittimes.com/tag/custodian.html">custodian</a> was accused of using customer funds and venture capital to cover lost deposits by Nevada’s Financial Institutions Division (FID). Attorneys filed a petition to impound <a rel="noopener noreferrer nofollow" title="Prime Trust" href="https://thebittimes.com/tag/prime-trust.html">Prime Trust</a> assets, ban all employees from accessing accounts, and appoint a receiver for rehabilitation.</p> 
    <figure class="wp-block-embed is-type-wp-embed is-provider-protos wp-block-embed-protos"> 
     <div class="wp-block-embed__wrapper"> 
      <blockquote class="wp-embedded-content" data-secret="QrxnAguI3Z">
        Scoop: TrueUSD pauses attestations amid Prime Trust issues 
      </blockquote><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" style="position: absolute; clip: rect(1px, 1px, 1px, 1px);" title="“Scoop: TrueUSD pauses attestations amid Prime Trust issues” — Protos" src="https://protos.com/scoop-trueusd-pauses-attestations-amid-prime-trust-issues/embed/#?secret=lMHuY4CHSr#?secret=QrxnAguI3Z" data-secret="QrxnAguI3Z" width="500" height="282" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe> 
     </div> 
    </figure> 
    <p>Read more: <a rel="noopener noreferrer nofollow" title="Prime Trust" href="https://thebittimes.com/tag/prime-trust.html">Prime Trust</a> accused of using customer funds to cover lost deposits</p> 
    <p>The firm’s chapter 11 filing said that the move comes following the appointment of a receiver, Nevada Bank’s chief exec John Guedry, as well as a special restructuring committee comprised of three people: Guedry, John Wilcox, and Michael Wyse.</p> 
    <p><em>Quotes in bold are our emphasis. Got a tip? Send us an email or ProtonMail. For more informed news, follow us on&nbsp;</em><em>Twitter</em><em>,&nbsp;</em><em>Instagram</em><em>,&nbsp;</em><em>Bluesky</em><em>, and&nbsp;</em><em>Google News</em><em>, or subscribe to our&nbsp;</em><em>YouTube</em><em>&nbsp;channel.</em></p> 
   </div> 
  </div> 
 </div> 
</div>

Former Binance US custodian Prime Trust joins crypto's chapter 11 club

TheBitTimes

Other articles published on Aug 15, 2023

Breaking: Binance Files Protective Order Against SEC

Weekly Cryptocurrency Market Analysis: Altcoins Fall As Sellers Continue To Pressure

Bitcoin Bull Market Will Happen in 2024: Research Analyst

Singapore Releases Revised Regulatory Framework For Stablecoins

Crypto : Une belle saison se profile pour les altcoins après la disette

ADA, SOL and MATIC Break Free From SEC-Induced FUD: Details

Join our free newsletter for daily crypto updates!