TechFlow News, May 19: According to a Decrypt report, the PCT Litigation Trust (the Prime Core Technologies Bankruptcy Asset Disposition Trust) recently filed a lawsuit against Swan Bitcoin—a Bitcoin financial services company—in the U.S. Bankruptcy Court for the District of Delaware, seeking nearly $1 billion in damages.
The complaint alleges that Swan Bitcoin, leveraging special relationships between its executives and internal personnel at Prime Trust, obtained non-public information in advance and transferred out approximately 11,992 BTC (valued at roughly $917 million at current prices), along with about $22.4 million in cash, $5 million in stablecoins, and 91,444 XRP—thereby avoiding substantial losses prior to Prime Trust’s bankruptcy filing.
Prime Trust was forcibly shut down in June 2023 by Nevada regulators due to insolvency and filed for bankruptcy protection in August 2023, owing approximately $82 million to its customers.
In response, Swan Bitcoin stated that customer assets held by Prime Trust in trust form do not constitute bankruptcy estate property and therefore should not be used to repay unsecured creditors; it expects the court to uphold this position.
