Crypto asset manager Prime Trust has filed for Chapter 11 bankruptcy protection in Delaware after facing a cash shortage from its clients.
The company said in an August 15 article: filing It has 25,000 to 50,000 creditors, estimated assets worth $50 million to $100 million, and liabilities of $100 million to $500 million.
“We intend to file a number of motions with the Bankruptcy Court to facilitate our orderly evaluation of all strategic alternatives, including the potential sale of our assets and businesses. ‘ said the paper. Said In the attached press release.
He added that he expected the motion to include a request to continue paying wages and benefits to employees.
The company’s top five unsecured creditors hold approximately $105 million in claims, including the largest amount of $55 million.
Prime Core Technologies Inc., Prime Trust, LLC, Prime IRA LLC, and Prime Digital, LLC were listed as companies applying for Chapter 11 relief.
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Prime Trust’s bankruptcy came after Nevada corporate regulators issued a cease and desist order on June 21, citing the company’s financial condition as “materially deficient” and its inability to meet customer withdrawals. This is what I received.
A few days later, on June 26, Nevada regulators petitioned a court to place the company in trusteeship, which the court approved on July 18.
Prime Trust agreed to the petition because of its “large deficit between assets and liabilities.”
At the time of the petition, Prime Trust owed clients more than $85 million in fiat currency, but had only about $2.9 million on hand. Digital assets and liabilities are less, with Prime Trust holding about $68.6 million while owing about $69.5 million in cryptocurrencies.
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