Bitcoin Magazine Prime Trust Bankruptcy: What it Means for Bitcoin Custody and Investors

In June of 2023, Prime Trust, a regulated trust company that was widely regarded as a reliable custodian for digital assets, abruptly shut down. Over the following years, thousands of people and companies whose assets were held by Prime Trust were prevented from accessing their property. As the saga unfolded, it became apparent that Prime Trust had perpetrated a massive fraud for almost a year. Regulators at the Nevada Financial Institutions Division, whose mandate had been to prevent such scams, did not step in until it was too late.

Although the size of the fraud was large, with over 80 million dollars’ worth of assets having been lost, Prime Trust still possessed many millions of dollars of proper

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