BitGo backs out of deal to acquire Prime Trust BitGo backs out of deal to acquire Prime Trust
Prime Trust's subsidiary, Banq, had filed for bankruptcy earlier in the month.
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Updated: Jun. 22, 2023 at 3:36 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Cryptocurrency custodial company BitGo said it “has made the hard decision to terminate its acquisition” of rival firm custody Prime Trust, according to a June 22 tweet.
BitGo stated it made considerable effort and worked to find a path forward with Prime Trust. It added:
“This decision was not made lightly and BitGo remains committed to our mission to deliver trust in digital assets.”
BitGo has yet to respond to CryptoSlate’s request for comment as of press time.
Earlier in the month, BitGo signed a term sheet to acquire 100% equity in Prime Core Technologies, the parent company of Prime Trust.
Prime Trust struggles
A subsidiary of Prime Trust, Banq, filed for bankruptcy on June 14 and listed assets worth $17.72 million, with its liabilities around $5.4 million.
Around the same period, stablecoin TrueUSD (TUSD) paused minting on Prime Trust until further notice. At the time, there were speculations that Prime Trust was insolvent.
Speaking on the failed acquisition, Bitcoin Magazine CEO David Bailey said any exchange that used Prime Trust’s service and transferred funds off its platform in the last three months could be subject to a clawback.
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BitGo
BitGo is a market leader in institutional-grade cryptocurrency investment services, providing institutional investors with security, compliance, and custodial solutions for blockchain-based currencies.