BitGo Terminates Agreement to Acquire Prime Trust, Client Deposits and Withdrawals Frozen
BitGo walked away from a deal to acquire the troubled custodian.
- "After considerable effort and work to find a path forward with Prime Trust, BitGo has made the hard decision to terminate its acquisition of Prime Trust. This decision was not made lightly and BitGo remains committed to our mission to deliver trust in digital assets," BitGo posted on Twitter.
"If there is a hole in Prime Trust customer balances (BitGo said they’d pull out if there was, and they just pulled out), any exchange that used their service and transferred funds off PT platform in the last 3 months is going to be subject to clawbacks. Get your money out now," Bitcoin Magazine's David Bailey sounded the alarm.
- The company has "a shortfall in customer funds" and was unable to meet all withdrawal requests this month, the Nevada Department of Business and Industry said on Thursday.
"On or about June 21, 2023, Respondent was unable to honor customer withdrawals due to a shortfall of customer funds caused by a significant liability on the Respondent's balance sheet owed to customers. Additionally, Respondent failed to safeguard assets under its custody and is unable to meet all customer withdrawals."
- According to several accounts, Prime Trust has suspended deposits and withdrawals of fiat and digital assets for its clients.
