On June 13, 2023, court documents revealed that Prime Trust’s subsidiary Banq , Banq Company, has filed for Chapter 11 bankruptcy protection. The Chapter 11 filing was made in the state of Nevada and disclosed total assets of $17.725 million and liabilities of $5.4 million. However, the filing also reveals that assets worth $17.5 million have been transferred to a group called Fortress NFT, referred to as an “unauthorized transfer.”
Fortress Trust, a new incubator company founded by three members of the Banq /Prime Trust team, has gained popularity among companies like Swan Bitcoin, which recently moved from Prime Trust to Fortress Trust. The announcement comes following a planned acquisition of Prime Trust by BitGo, after signing a letter of intent to purchase the incubator.
Prior to BitGo’s letter of intent, rumors and speculation about financial difficulties facing Prime Trust spread on social media platforms. BitGo confirmed its intention to leverage Prime Trust’s infrastructure, exchange network, and specialized retirement account for cryptocurrencies, expecting significant benefits from these assets.
Prime Trust also collaborates with the team responsible for the stablecoin TUSD. On June 10, 2023, the stablecoin issuer announced that “TUSD issuance via Prime Trust is suspended until further notice.” However, within three days, on June 13, TUSD announced that they were actively working on resuming mining operations with the cryptocurrency incubator. “We at the TUSD team are working diligently to resume TUSD issuance on Prime Trust. We understand the importance of providing a seamless experience for our users,” confirmed the TUSD team.