BitGo backs out of deal to acquire Prime Trust
Prime Trust's subsidiary, Banq, had filed for bankruptcy earlier in the month.
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.
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.