Swan Bitcoin Faces $1 Billion Lawsuit Over Prime Trust Collapse
- PCT Litigation Trust has filed a lawsuit against Swan Bitcoin, seeking repayment of nearly $1 billion in assets.
- The lawsuit alleges Swan used inside information to avoid losses from the Prime Trust collapse in 2023.
- The suit seeks recovery of nearly 12,000 Bitcoin, stablecoins, and XRP.
- Prime Trust was forced to shut down by Nevada regulators in June due to financial instability.
- Swan allegedly transferred nearly $917 million worth of assets before Prime’s bankruptcy filing.
The lawsuit claims that Swan Bitcoin leveraged non-public information to transfer its assets from Prime Trust ahead of the custodian’s bankruptcy, avoiding significant losses that other customers faced. This case highlights the ongoing legal challenges following Prime Trust’s collapse.
With allegations of insider knowledge and asset transfers amounting to nearly $917 million in Bitcoin, this lawsuit underscores the complexities involved in crypto asset management during financial crises. (Source)
