Crypto custodian Prime Trust files for Chapter 11 bankruptcy

Crypto custodian Prime Trust has filed for Chapter 11 Bankruptcy in Delaware after it faced a shortfall in customer funds.

The company said in an Aug.15 filing that it has between 25,000 to 50,000 creditors with estimated liabilities between $100 million to $500 million compared to $50 million to $100 million worth of estimated assets.

“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‚Äôs clients and stakeholders,” it said in an accompanying press release.

Prime Core Technologies Inc., Prime Trust, LLC, Prime IRA LLC and Prime Digital, LLC were the entities listed as the entities filing for Chapter 11 relief.

This is a developing story, and further information will be added as it becomes available.