BitGo changed its mind about saving the troubled crypto depository Prime Trust
Date: 2023-06-24 Author: Karina Ziganova Categories: BLOCKCHAIN
Cryptocurrency provider BitGo announced its decision not to absorb the troubled competitor Prime Trust amid the bankruptcy of its subsidiary
Cryptocurrency exchange Binance has high hopes for TUSD after the issuer of the stablecoin binance USD (BUSD) on the Ethereum network, Paxos, stopped issuing BUSD due to the requirements of the US authorities. To spur activity around TUSD, the exchange even removed commissions in stablecoin trading pairs. According to analytics firm Arkham Intelligence, Binance wallets hold about 90% of the TUSD supply.
BitGo will not absorb Prime Trust's cryptocurrency depository. The company announced this on its Twitter page. What exactly caused the failure of the deal is unknown. BitGo claims that they made the decision after unsuccessful attempts to save the company.
The breakdown of the deal came just a week after Prime Trust's subsidiary, Banq, filed for bankruptcy in the United States. In its bankruptcy filing, Banq transferred assets totaling $17.7 million, liabilities totaling $5.4 million, and an "unauthorized transfer" of assets worth $17.5 million to a certain company, Fortress NFT Group.
The breakdown of the deal came just a week after Prime Trust's subsidiary, Banq, filed for bankruptcy in the United States. In its bankruptcy filing, Banq transferred assets totaling $17.7 million, liabilities totaling $5.4 million, and an "unauthorized transfer" of assets worth $17.5 million to a certain company, Fortress NFT Group.
Initially, BitGo's plans to buy out Prime Trust became known in early June. It was assumed that the Prime Trust depository would join the BitGo network of trusts in South Dakota, New York, Germany and Switzerland as a result of the transaction. Prime Trust's clients included Binance, Celsius Network, as well as the issuer of the TUSD stablecoin, TrueUSD.
Earlier, the editors wrote that TrueUSD had to suspend the redemption and issuance of TUSD stablecoins associated with Prime Trust. Later it turned out that the total amount of liabilities of the TUSD issuer exceeded the amount of underlying assets due to some error in the reservation system
Earlier, the editors wrote that TrueUSD had to suspend the redemption and issuance of TUSD stablecoins associated with Prime Trust. Later it turned out that the total amount of liabilities of the TUSD issuer exceeded the amount of underlying assets due to some error in the reservation system
Cryptocurrency exchange Binance has high hopes for TUSD after the issuer of the stablecoin binance USD (BUSD) on the Ethereum network, Paxos, stopped issuing BUSD due to the requirements of the US authorities. To spur activity around TUSD, the exchange even removed commissions in stablecoin trading pairs. According to analytics firm Arkham Intelligence, Binance wallets hold about 90% of the TUSD supply.
