Bitgo Abandons Acquisition of Prime Trust Amidst Nevada-Based Custodian’s Ongoing Uncertainty
On June 22, 2023, Bitgo, a digital assets firm and crypto custodian, declared the termination of its planned acquisition of custodian Prime Trust. The company cited a “considerable effort” in attempting to chart a course for Prime Trust’s future.
Bitgo Cancels Prime Trust Acquisition
A fortnight prior, Bitgo announced its intention to acquire Nevada-based crypto custodian Prime Trust through a letter of intent. However, Bitgo has now called off the acquisition and will not proceed with the Prime Trust agreement.
“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,” Bitgo said on Thursday. “This decision was not made lightly and Bitgo remains committed to our mission to deliver trust in digital assets.”
PrimeTrust has suspended all deposits of fiat and digital assets. #TrueUSD (#TUSD) is not affected by this situation. We have no exposure to Prime Trust and maintain multiple USD rails for minting and redemption. Rest assured, all your funds are safe with TUSD.
— TrueUSD (@tusdio) June 22, 2023
Before Bitgo’s choice to end the acquisition deal, Prime Trust’s subsidiary Banq filed for Chapter 11 bankruptcy protection. Additionally, on June 19, 2023, the official Twitter account for the TUSD project revealed that “minting through Prime Trust is still temporarily paused” while referencing an atmosphere of “uncertainty.”
Sources have also provided Bitcoin.com News with an email showing that on June 21, Prime Trust customers were informed that deposits and withdrawals were being suspended. “Please take action immediately to stop sending client custody assets to Prime Trust, especially digital 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) on June 22, Prime Trust’s Twitter account has made no mention of the issue, with its last tweet posted on May 5, 2023. Bitgo’s announcement on Twitter was made at 9:17 a.m. (ET) on Thursday morning. A tweet from TUSD and other sources has confirmed that Prime Trust has halted deposits.
What do you think about Bitgo canceling the deal to acquire Prime Trust? Share your thoughts about this subject in the comments section below.
