Bitgo Abandons Acquisition of Prime Trust Amidst Nevada-Based Custodian’s Ongoing Uncertainty

On June 22, 2023, Bitgo, a integer assets steadfast and crypto custodian, declared the termination of its planned acquisition of custodian Prime Trust. The institution cited a “considerable effort” successful attempting to illustration a people for Prime Trust’s future.

Bitgo Cancels Prime Trust Acquisition

A fortnight prior, Bitgo announced its volition to get Nevada-based crypto custodian Prime Trust done a missive of intent. However, Bitgo has present called disconnected the acquisition and volition not proceed with the Prime Trust agreement.

“After sizeable effort and enactment to find a way guardant with Prime Trust, Bitgo has made the hard determination to terminate its acquisition of Prime Trust,” Bitgo said connected Thursday. “This determination was not made lightly and Bitgo remains committed to our ngo to present spot successful integer assets.”

PrimeTrust has suspended each deposits of fiat and integer assets. #TrueUSD (#TUSD) is not affected by this situation. We person nary vulnerability to Prime Trust and support aggregate USD rails for minting and redemption. Rest assured, each your funds are harmless with TUSD.

— TrueUSD (@tusdio) June 22, 2023

Before Bitgo’s prime to extremity the acquisition deal, Prime Trust’s subsidiary Banq filed for Chapter 11 bankruptcy protection. Additionally, connected June 19, 2023, the authoritative Twitter relationship for the TUSD task revealed that “minting done Prime Trust is inactive temporarily paused” portion referencing an ambiance of “uncertainty.”

Sources person besides provided Bitcoin.com News with an email showing that connected June 21, Prime Trust customers were informed that deposits and withdrawals were being suspended. “Please instrumentality enactment instantly to halt sending lawsuit custody assets to Prime Trust, particularly integer assets,” the email advised.

It appears that PrimeTrust has frozen withdrawals

— NickH ◉ (@hash_bender) June 22, 2023

As of 10:30 a.m. Eastern Time (ET) connected June 22, Prime Trust’s Twitter account has made nary notation of the issue, with its past tweet posted connected May 5, 2023. Bitgo’s announcement connected Twitter was made astatine 9:17 a.m. (ET) connected Thursday morning. A tweet from TUSD and different sources has confirmed that Prime Trust has halted deposits.

What bash you deliberation astir Bitgo canceling the woody to get Prime Trust? Share your thoughts astir this taxable successful the comments conception below.