1 year ago
Shortly aft the custodian Bitgo announced its acquisition of the institution Prime Trust, its payments subsidiary, a steadfast called Banq, filed for Chapter 11 bankruptcy extortion successful the United States. According to tribunal documents, the filing reveals that Banq listed astir $17.725 cardinal successful assets and astir $5.4 cardinal successful liabilities.
Banq’s Bankruptcy Filing Exposes ‘Unauthorized Transfer’
On June 13, 2023, tribunal documents revealed that Banq Incorporated, a subsidiary of the custodian Prime Trust, filed for Chapter 11 bankruptcy. The Chapter 11 filing, registered successful Nevada, discloses that the institution listed a full of $17.725 cardinal successful assets and $5.4 cardinal successful liabilities. However, the filing besides reveals that assets worthy $17.5 cardinal were transferred to Fortress NFT Group, marked arsenic an “unauthorized transfer.”
Fortress Trust, a caller custodian startup founded by 3 members of the Banq/Prime Trust team, has gained traction among firms specified arsenic Swan Bitcoin, which has transitioned from Prime Trust to Fortress Trust successful caller times. The announcement comes successful the aftermath of Bitgo’s planned acquisition of Prime Trust, pursuing the signing of a missive expressing its intent to acquisition the custodian.
Prior to Bitgo’s missive of intent, rumors and speculation astir Prime Trust facing fiscal difficulties circulated connected societal media platforms. Bitgo stated that the institution would leverage Prime Trust’s infrastructure, speech network, and crypto-centric IRA, expecting to deduce important benefits from these assets.
Prime Trust besides collaborates with the squad liable for the stablecoin TUSD. On June 10, 2023, the stablecoin issuer announced that “TUSD mints via Prime Trust are paused for further notification.” However, 3 days later, connected June 13, TUSD stated that it was actively moving to resume mining operations with the crypto custodian. “We, the TUSD team, are diligently moving towards resuming TUSD minting connected Prime Trust. We recognize the value of providing a seamless acquisition for our users,” the TUSD squad emphasized.
What are your thoughts connected the implications of Banq’s bankruptcy filing and the unauthorized plus transfer? Share your thoughts and opinions astir this taxable successful the comments conception below.
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