On June 22, the wallet infrastructure provider and custodian of digital assets; BitGo, advertisement on Twitter that it had decided to cancel the acquisition of fintech infrastructure provider Prime Trust. According to BitGo, “this decision has not been taken lightly.” The full ad read:
“After considerable effort and work to find a way forward with Prime Trust, BitGo has made the difficult decision to terminate its acquisition of Prime Trust. This decision has not been taken lightly and BitGo remains committed to our mission. to offer confidence in digital assets”.
BitGo’s cancellation of the deal comes just two weeks after it shared its non-binding letter of intent to acquire Prime Trust. Although specific details of the deal were not disclosed, the potential acquisition between BitGo and Prime Trust was poised to provide BitGo with access to Prime Trust’s pay rails and cryptocurrency IRA fund, as well as the opportunity to expand its management services. of heritage.
In addition, the integration of Prime Trust’s Nevada trust company into BitGo’s network of regulated trust companies in various jurisdictions would have been a significant expansion for the company.
Unconfirmed rumors on Twitter speculated that the deal may have been called off due to a cease and desist order Prime Trust received from Nevada state regulators. However, these rumors have not been verified at the moment.
SCOOP: PRIME TRUST RECEIVED CEASE AND DESIST ORDER FROM NEVADA STATE REGULATORS.
PRIME IS HALTING ALL WITHDRAWALS OF FIAT AND CRYPTO EFFECTIVE IMMEDIATELY. pic.twitter.com/gsRYevAmJM
— DIRTY BUBBLE MEDIA: GOOD LUCK, GOOD BYE. (@MikeBurgersburg) June 22, 2023
On June 13, court documents revealed that Banq, Prime Trust’s payments affiliate, had filed for bankruptcy protection in the United States. Banq’s bankruptcy filing revealed assets worth USD 17.72 million and liabilities of USD 5.4 million. This development came shortly after BitGo expressed its intention to acquire Prime Trust on June 8. Whether the timing of the bankruptcy filing had a negative impact on BitGo’s proposed takeover of Banq’s parent company is yet to be determined.
Prime Trust has also faced significant challenges of late, including reports from dismissal of a third of its staff in january. Also, last year, Prime Trust was embroiled in a scandal in Oregon. It was revealed that he was the source of a $500,000 contribution to the state Democratic Party, which was later traced back to the former FTX executive; Nishad Singh.
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