US-based crypto custodian Prime Trust has sparked new controversy by applying for Chapter 11 bankruptcy protection in Delaware.

Company Problem

     The problem with Prime Trust is serious. The company owes an estimated $500 million to more than 25k personal creditors, with the largest personal liability being $55 million. It is also being said about the company that it has planned massive layoffs.

Crisis or scam?

     Prime Trust has been deemed in crisis after losing access to its wallet, for which the FID of Nevada filed a petition in June 2023 to take over the company. It is also believed that Prime Trust has scammed on the pretext of losing access to the wallet.

Entire Prime Group in trouble

     For the last few months, the Prime Trust withdrawal facility was stopped, and now in the bankruptcy petition, not only Prime Trust but also other companies Prime Core Technologies, Prime IRA, and Prime Digital are also included. So now suspicion is turning into belief that Prime Trust is a scam.