Prime Trust Accuses Swan Bitcoin of Insider Trading Ahead of Bankruptcy
- Prime Trust, a cryptocurrency custodian, filed for bankruptcy in June after the collapse of TerraUSD.
- New management has filed a lawsuit against Swan Bitcoin, alleging misuse of insider information to withdraw nearly $1 billion in assets.
- Swan Bitcoin is accused of withdrawing approximately 11,992 BTC (valued at around $921 million), along with other assets just before Prime Trust’s bankruptcy filing.
- Prime Trust’s financial issues were exacerbated by investments in TerraUSD and complications with accessing old cold wallets.
- The lawsuit claims that these withdrawals allowed Swan Bitcoin to avoid significant losses during the insolvency period.
The legal action initiated by Prime Trust’s successor seeks to recover funds transferred during the critical period leading up to its bankruptcy declaration. This case highlights ongoing challenges within the cryptocurrency sector following major financial collapses.
As Prime Trust navigates its restructuring plan, it has filed over 80 lawsuits related to asset recovery efforts following its insolvency linked to past investments and operational difficulties.(Source)
