Crypto custodian Prime Trust LLC along with certain affiliated entities has initiated Chapter 11 bankruptcy proceedings in the US Bankruptcy Court for the District of Delaware. The filing was confirmed in a statement issued by Prime Trust.
The decision to file for bankruptcy follows the appointment of John Guedry as the receiver for the company, and John Guedry, John Wilcox, and Michael Wyse as the exclusive members of a specialized restructuring committee. While headquartered in Las Vegas, the company will continue to operate its business as “debtors-in-possession” under the guidance of the special committee.
Prime Trust aims to make strategic evaluations through a series of motions to be submitted to the Bankruptcy Court. These motions are intended to enable the company to explore various alternatives, including the potential sale of its assets and ongoing operations. The company indicated that these motions might encompass requests for the regular payment of wages and benefits to its employees.
According to the bankruptcy filing, Prime Trust’s estimated liabilities range between $100 million and $500 million, while its assets are valued at $50 million to $100 million. The filing also indicated that the company has a creditor count of 25,001 to 50,000.
Entities that have sought bankruptcy protection include Prime Trust LLC, Prime Core Technologies Inc., Prime IRA LLC, and Prime Digital, LLC.
