Prime Trust unit files for bankruptcy

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Banq, the payment subsidiary of crypto custodian Prime Trust, has filed for Chapter 11 bankruptcy in Nevada District Court.

The firm reported ~$17.7 million in assets with a total liability of ~$5.45 million.

Prime Trust's payments arm files for bankruptcy
Data: CoinDesk.

According to the website, the company offers software solutions for “digital payment, banking and cryptocurrency services on mobile devices.”

Banq’s filing in bankruptcy court comes just days after parent Prime Trust entered into a preliminary agreement with BitGo to buy the last 100% stake in the custodian.

Prime Trust ran into financial trouble as a result of the bankruptcy of Celsius Network. The company cut a third of its staff in January.

The difficulties of the custodian also affected the issuer of the stablecoin TrueUSD (TUSD). On June 10, the project team announced the suspension of the issuance of the coin through Prime Trust until “further notice”.

“TUSD issuance and redemption services remain in place and will continue to operate as usual. We want to assure you that our partnerships with other banking institutions remain unchanged. This allows you to seamlessly conduct transactions,” TrueUSD said.

On June 13, South Korean crypto asset management platform Haru Invest suspended withdrawals and deposits, citing issues with unnamed service partners. According to media reports, we are talking about Banq or Prime Trust.

Recall that in June 2022, against the backdrop of a bear market, Prime Trust closed a $107 million Series B funding round. In 2021, the company raised $64 million.

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