TechFlow reported that cryptocurrency custodian Prime Trust has filed for Chapter 11 bankruptcy in Delaware following a shortfall in customer funds.
In documents filed on August 15, the company stated it has between 25,000 and 50,000 creditors, with estimated liabilities ranging from $100 million to $500 million, while its estimated assets are valued between $50 million and $100 million.
"The company believes that the initiation of the Chapter 11 case will provide a transparent and value-maximizing process for the benefit of its customers and stakeholders," the company said in an accompanying press release. Prime Core Technologies Inc., Prime Trust, LLC, Prime IRA LLC, and Prime Digital, LLC were listed as the entities seeking Chapter 11 relief.
