June 28 (Cointime) - Crypto companies that had partnered with Prime Trust are addressing concerns about the safety of their customers' assets following the custodian's collapse. Some firms, particularly those that only deal in Bitcoin, are in a worse position than others. Coinbits, a platform for buying, selling, and saving in Bitcoin, has stated that it intends to fight for its members who have funds locked up with Prime Trust.
Prime Trust was placed into receivership due to financial issues, with the company being over $82 million in debt from fiat liabilities and holding the majority of its digital assets in an illiquid token called 'AUDIO'. Swan Bitcoin, another Bitcoin financial services company, withdrew its assets from Prime Trust before the custodian's collapse and moved them to Fortress, a crypto custodian led by the same CEO that led Prime Trust until January 2021.
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