Prime Trust Unit Banq Files for Bankruptcy

Banq, a subsidiary of embattled crypto custodian Prime Trust, has filed for bankruptcy successful a U.S. bankruptcy tribunal successful the territory of Nevada.

In the bankruptcy filing, the institution cited astir $17.72 cardinal successful assets against $5.4 cardinal successful liabilities.

This comes arsenic Banq’s parent, Prime Trust, works to close an acquisition deal with BitGo aft facing a fiscal situation arsenic a effect of the Celsius bankruptcy.

Meanwhile, TrueUSD, which has a banking narration with Banq’s genitor Prime Trust, said that its intermission successful stablecoin mints and redemptions has to bash with “Prime Trust's bandwidth issues”.

South Korean crypto output steadfast Haru Invest besides engaged successful an operational pause citing difficulties with an unnamed work provider, which is thought to beryllium Banq oregon Prime Trust.

The institution besides notes successful its filing that $17.5 cardinal successful assets were taken successful an “unauthorized transfer” by erstwhile officers consisting of commercialized secrets, arsenic good arsenic proprietary accusation and technology, to Fortress NFT Group.

Fortress NFT Group was founded by Banq’s erstwhile CEO, CTO, and CPO. Banq has sued Fortress for allegedly stealing commercialized concealed accusation to motorboat rival NFT platforms Fortress NFT and Planet NFT. It further alleges they engaged successful fraudulent activities to screen up their misconduct.

Banq said successful a suit against the trio that Scott Purcell, its erstwhile CEO, attempted to pivot Banq towards NFTs. Facing pushback from its committee and shareholders, Purcell founded Fortress NFT and past sold Banq’s computers, intelligence property, and firm infrastructure to the caller company.

“Their theft of Banq’s firm assets adjacent included taking the company’s spot licenses for Las Vegas Raiders’ games astatine Allegiant Stadium, each without Board support oregon knowledge. Specifically, Defendant Purcell transferred the spot licenses owned by Banq to himself,” the suit reads.

In aboriginal 2023 a Judge ordered the lawsuit to spell to arbitration arsenic Purcell and the different defendants successful the lawsuit signed arbitration clauses.