Prime Trust Reports $8M Loss Due to TerraUSD Investments
• Prime Core Technologies, the parent entity of crypto custodian Prime Trust, reports an $8 million shortfall from TerraUSD investments.
• The loss was disclosed in an Aug. 24 filing with the Bankruptcy Court for the District of Delaware in the United States.
• Following the news of the public filing, Coinbase director Conor Grogan shared that Prime Trust allegedly bought $77 million of Ethereum (ETH) on the open market at the market peak to meet withdrawals.
Prime Trust’s Parent Company Reports Loss
Prime Core Technologies, the parent entity of crypto custodian Prime Trust, reported an $8 million shortfall from TerraUSD investments which was disclosed in an Aug. 24 filing with Bankruptcy Court for District of Delaware in United States. The company attributed its investment losses and increased expenditures in October and November 2022 as key factors leading to its bankruptcy declaration.
Receivership Appointed by Nevada Court
In August, Prime Trust initiated a bankruptcy filing in US revealing estimated liabilities between $100 million to $500 million along with 25000 to 50000 creditors due to potential “irreparable harm” to users, public and confidence in emerging market of cryptocurrency. Regulators further revealed that since December 2021, Prime Trust had utilized customer funds to cover withdrawal requests accumulating a debt of $82 million including unaccounted deposits and fiat currency owned by customers.
Wrong Deposit Address Allegedly Caused Loss
Following news of public filing, Coinbase director Conor Grogan shared that Prime Trust allegedly bought $77 million Ethereum (ETH) on open market at market peak to meet withdrawals due wrong deposit address which caused them lose keys.
Bankruptcy Proceedings To Examine Alternatives
Prime Trust expressed that bankruptcy proceedings would enable company examine various alternatives including potential sale of assets.
Prime Core Technologies – parent entity crypto custodian Prime trust – reported an $8 million shortfall from TerraUSD investments resulting from losses incurred through USTC investments under previous management and increased expenditure during October-November 2022 leading it file for bankruptcy with estimated liabilities between 100-500$million along with 25000-50000 creditors . Following this Coinbase director allegedy pointed out wrong deposit address as cause behind their loss due which they had purchased 77$million ETH on openmarket at peak price meet withdrawals demands causing them lose keys eventually leading them declare bankruptcy for alternate solutions