Simon Ng Following the announcement of Bitgo’s impending acquisition of Prime Trust, Banq, a payments subsidiary under Prime Trust, has filed for Chapter 11 bankruptcy protection in the US. The documents filed in court indicate that Banq disclosed approximately $17.725 million in assets and a staggering $5.4 billion in liabilities.
Evidence of an ‘Unauthorized Transfer’ Unveiled through Banq’s Bankruptcy Filing
The court documents released on June 13, 2023, uncovered that Banq Incorporated, a Prime Trust subsidiary, applied for Chapter 11 bankruptcy protection. The Nevada-registered filing disclosed assets of $17.725 million and liabilities amounting to $5.4 million. Interestingly, the filing also exposed an “unauthorized transfer” of assets, worth $17.5 million, to Fortress NFT Group.
Fortress Trust, an emerging custodian startup, was established by three former members of the Banq/Prime Trust team. It has attracted the attention of businesses like Swan Bitcoin, which has recently shifted from Prime Trust to Fortress Trust. The transition followed shortly after Bitgo announced plans to acquire Prime Trust, signifying its intent through a letter.
Speculations regarding Prime Trust’s financial instability were rife on social media platforms before Bitgo’s letter of intent. Bitgo expressed its strategy to use Prime Trust’s infrastructure, exchange network, and crypto-centric IRA, anticipating substantial advantages from these assets.
Prime Trust is also associated with the TUSD stablecoin team. The issuer of the stablecoin declared a pause in TUSD minting via Prime Trust on June 10, 2023, stating “TUSD mints via Prime Trust are paused for further notification”. However, on June 13, the TUSD team mentioned their commitment to resuming minting operations with the crypto custodian, asserting, “We, the TUSD team, are diligently working towards resuming TUSD minting on Prime Trust. We understand the importance of providing a seamless experience for our users.”
This article ends with a call to share your thoughts.
We invite you to share your views on the bankruptcy filing of Banq and the unauthorized asset transfer. What do you think this implies? We encourage you to leave your thoughts and insights about this topic in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Banq Bankruptcy Filing
Who is filing for bankruptcy protection?
Banq, a payments subsidiary of Prime Trust, is filing for Chapter 11 bankruptcy protection in the United States.
Who is the unauthorized transfer to?
The unauthorized transfer of assets, worth $17.5 million, was made to Fortress NFT Group.
What is the link between Banq, Prime Trust, and Bitgo?
Bitgo announced its intention to acquire Prime Trust, a company that has Banq as a subsidiary. This announcement was made shortly before Banq filed for Chapter 11 bankruptcy protection.
Why are there rumors about Prime Trust’s financial difficulties?
Prior to Bitgo’s letter expressing its intent to purchase Prime Trust, there were speculations on social media platforms about Prime Trust facing financial difficulties. The reason behind these rumors has not been clearly specified in the text.
What is the current status of TUSD minting via Prime Trust?
TUSD minting via Prime Trust was paused as of June 10, 2023. However, the TUSD team announced on June 13, 2023, that they are actively working to resume the minting operations.
More about Banq Bankruptcy Filing
- Understanding Chapter 11 Bankruptcy
- What is Bitgo?
- Prime Trust Official Website
- More about TUSD Stablecoin
- Fortress NFT Group Information
(Note: This last link to Fortress NFT Group is a placeholder as I could not find an actual link, it is for illustrative purposes only)
4 comments
As a local, interesting to see such a high-profile case filed here in Nevada. Shows you the reach of the crypto world, doesn’t it?
The ‘unauthorized transfer’ just before filing for bankruptcy – some1’s covering their tracks. Looks like a movie plot!
man, i was just thinking about switching to fortress trust… does this mean my assets would be safer there?
This is exactly why transparency is essential in this industry. An unauthorized transfer of $17.5 mil? To Fortress NFT Group? Seems fishy, doesn’t it? We need answers!