The crypto custodian Prime Trust has filed for Chapter 11 bankruptcy after facing a shortfall in its consumer funds. The company is seeking protection against its creditors in the Delaware state of US.
According to the filing, Prime Trust has $50 million to $100 million in consolidated assets whereas its estimated liabilities lay around $100 million to $500 million for over 25,001-50,000 creditors.
The company has listed four of its entities into filing a petition in the US Bankruptcy Court for the District of Delaware for relief under chapter 11. These entities are Prime Core Technologies Inc., Prime Trust LLC, Prime IRA LLC and Prime Digital LLC.
An official press-release states that the company will continue to manage their businesses under the jurisdiction and in accordance with the Bankruptcy Court. The operations furthermore will be under supervision and direction of a Special Committee, appointed by the Court of Nevada.
Prime Trust intends to file numerous motions with the Bankruptcy Court in order to evaluate strategic alternatives such as sale of company’s assets and operations.
“The Company believes that the commencement of the Chapter 11 Cases will provide a transparent and value-maximizing process for the benefit of the Company’s clients and stakeholders.” the company said in the press-release.
Prime Trust halted its deposits and withdrawals services on 22 June following its subsidiary declaring bankruptcy on 14th June. The company has since been involved in legal conflicts under the District Court of Nevada.
