In a recent development, Bitgo, a digital assets firm and cryptocurrency custodian, has officially called off its proposed acquisition of Prime Trust, a custodian based in Nevada. Bitgo expressed that it had devoted significant effort in charting a future course for Prime Trust but ultimately made the difficult decision to terminate the acquisition.
Bitgo had initially announced its intention to acquire Prime Trust through a letter of intent two weeks ago. However, the company has now decided not to proceed with the agreement, citing the termination of the Prime Trust acquisition.
Bitgo stated on Thursday, “After extensive effort and careful consideration, Bitgo has made the challenging choice to end its acquisition of Prime Trust. This decision was made with careful thought, and Bitgo remains steadfast in its mission to establish trust in digital assets.”
Before Bitgo’s decision to withdraw from the acquisition deal, Prime Trust’s subsidiary Banq had filed for Chapter 11 bankruptcy protection. Furthermore, on June 19, 2023, the official Twitter account for the TUSD project revealed that minting through Prime Trust was temporarily paused due to an atmosphere of uncertainty.
According to sources, CryptokenTop.com News obtained an email on June 21, which informed Prime Trust customers about the suspension of deposits and withdrawals. The email advised customers to immediately cease sending client custody assets to Prime Trust, particularly digital assets.
As of 10:30 a.m. Eastern Time (ET) on June 22, Prime Trust’s Twitter account has not addressed the issue, with its last tweet posted on May 5, 2023. Bitgo’s announcement on Twitter was made at 9:17 a.m. (ET) on Thursday morning. TUSD’s tweet and other sources have confirmed that Prime Trust has halted deposits.
We would like to hear your thoughts on Bitgo’s decision to cancel the acquisition of Prime Trust. Feel free to share your opinions on this matter in the comments section below.
Frequently Asked Questions (FAQs) about acquisition termination
What is the reason behind Bitgo’s decision to cancel the acquisition of Prime Trust?
Bitgo cited several reasons for terminating the acquisition, including significant uncertainty surrounding Prime Trust, the subsidiary Banq’s Chapter 11 bankruptcy protection filing, and the temporary suspension of deposits and withdrawals.
What is Bitgo’s mission in the digital assets industry?
Bitgo is committed to delivering trust in digital assets. They aim to provide secure custodial services and establish confidence among users in the realm of cryptocurrencies.
How did Prime Trust’s bankruptcy filing impact the acquisition deal?
Prime Trust’s subsidiary, Banq, filed for Chapter 11 bankruptcy protection, which introduced additional uncertainties and complications into the acquisition process. This likely contributed to Bitgo’s decision to cancel the deal.
What were the implications of the suspension of deposits and withdrawals by Prime Trust?
Prime Trust informed its customers via email about the suspension of deposits and withdrawals, specifically advising against sending digital assets to their custody. This further highlighted the instability and raised concerns surrounding Prime Trust’s operations.
Has Prime Trust addressed the situation publicly?
As of the provided information, Prime Trust’s Twitter account has not made any mention of the issue since May 5, 2023. It indicates a lack of public communication from Prime Trust regarding the recent events and their impact on their services.
More about acquisition termination
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- [Banq](insert relevant link)
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- [CryptokenTop.com News](insert relevant link)
- [TUSD](insert relevant link)