According to a June 22 report, cryptocurrency custodian BitGo said it had “made the difficult decision to cancel the acquisition” of custodian rival Prime Trust. Tweet.
BitGo said it made great efforts and worked to find a way forward with Prime Trust. He further added:
“This decision was not taken lightly. BitGo remains committed to our mission of providing trust for digital assets.”
BitGo has yet to respond of crypto slate Requests for comment at press time.
Earlier this month, BitGo signed a term sheet to acquire a 100% stake in Prime Trust’s parent company, Prime Core Technologies.
Prime Trust struggles
Bank, a subsidiary of Prime Trust, filed for bankruptcy on June 14 and listed assets worth $17.72 million and liabilities of about $5.4 million.
Around the same time, the TrueUSD (TUSD) stablecoin suspended issuance on Prime Trust until further notice. At that time, speculation Prime Trust has filed for bankruptcy.
Bitcoin Magazine CEO David Bailey has spoken out about the failed acquisition. Said Exchanges that have used Prime Trust’s services and transferred funds from the platform within the last three months may be subject to clawbacks.
An article about BitGo pulling out of a deal to acquire Prime Trust first appeared on CryptoSlate.