Crypto Custodian Prime Trust Files for Bankruptcy

Prime Trust, a Las Vegas-based cryptocurrency custodian, has filed for Chapter 11 bankruptcy protection following a series of setbacks, including being placed into receivership by Nevada regulators and facing allegations of mismanagement and securities fraud. The company had been experiencing difficulties for the past year, including a failed acquisition deal and the shutdown of its operations by regulators. Prime Trust owed over $82 million to customers and had $68 million in digital assets under custody, most of which were held in an illiquid token. Finding a buyer for the company may prove challenging due to its troubled history.