Prime Trust’s Payments Division Files for Bankruptcy Protection

Reading Time: < 1 minute

Banq, a payment subsidiary of crypto custodian Prime Trust, has filed for Chapter 11 bankruptcy in Nevada District Court with ~$17.7 million in assets and ~$5.45 million in total liabilities.

The company’s website advertises software solutions for “digital payment, banking and cryptocurrency services on mobile devices.”

This is a significant development, given that just days prior, Prime Trust entered into a preliminary agreement with BitGo to purchase its full stake in the custodian.

The financial troubles of Prime Trust can be attributed with certainty to the bankruptcy of Celsius Network, and the consequent staff downsizing at the beginning of 2021.

The knock-on effect extended to TrueUSD (TUSD), a stablecoin project, which ceased all issuance through Prime Trust until further notice.

However, a commitment was made to sustain existing banking partnerships, allowing users to conduct their transactions reliably.