Old cryptocurrency wallet linked to Prime Trust blocked, team unable to access assets worth about $45m, Arkham Intelligence data On June 28 appears. According to the report, most of the assets consist of Ethereum, which is valued at more than $44 million at current rates. The remaining assets consist of USDC and USD stablecoins, with a small amount of HEX.
The move comes less than 48 years after he filed a lawsuit Request is in progress The Prime Trust team or its partners are denied access to old wallets. Custodian of Cryptocurrency and Fiat Currencies in Receivership Nevada regulators are taking measures to prevent the illegal transfer of user funds in violation of a court order.
Head of trust problems
On June 27, the Nevada Division of Financial Institutions (FID) acquired Prime Trust and ceased operations. It has also been reported that the regulator is actively seeking a receiver. More records show that Prime Trust faces liquidity challenges.
Fill out the guard by FID reveal that while Al-Hafiz owes users more than $85 million in Fiat, they only have $3 million. At the same time, the company owed users $69.5 million in cryptocurrency and, by the time it filed for receivership, held $68.6 million in crypto assets.
At one point, Prime Trust provided services to cryptocurrency exchanges and top-tier service providers, including Binance.US and FTX.
However, after a Nevada cease and desist order warned the crypto community, including customers, that Prime Trust was technically insolvent, events were heading south. BitGo has retracted its initial offer to acquire the company. Furthermore, there are allegations that Prime Trust used customer funds to process cryptocurrency withdrawals. Furthermore, Prime Trust is said to be operating with an equity deficit of $12 million.
old wallets
The huge post-registration deficit can be attributed to the Prime Trust’s inability to access old wallets. Based on the latest data From Arkham, one of the old wallets in question remains blocked, and is inaccessible to the team.
More details reveal that the last transaction from this wallet was a $527,000 transfer to a Prime Trust Custody wallet in early January 2020. Another inflow was around that time and coincided with a Prime Trust led by a new team. However, there was another stream in 2021 for Fireblocks only; The team contracts to manage the Prime Trust, only to discover they don’t have access to these old wallets.
In November 2022, FTX filed for bankruptcy. Subsequently, the findings revealed that Sam Bankman-Fried and Alameda Research, the trading wing associated with the exchange, had embezzled billions in user funds.
Featured image from Canva, chart from TradingView