Custodian BitGo has announced that it will not be acquiring cryptocurrency storage company Prime Trust. The decision comes after “considerable effort and work” to find a way forward with Prime Trust, according to a tweet from BitGo. The company stated that the decision was not made lightly and that it remains committed to its mission of delivering trust in digital assets.
Prime Trust, founded in 2016 in Las Vegas, Nevada, specializes in providing developer tools and APIs for fintech and crypto projects. Its services include payment systems, compliance, liquidity, settlement, and digital asset custody. The company has around 700 clients in the industry.
Despite the bear market, Prime Trust managed to raise $107 million in June 2022 to support its growth. However, the company faced legal issues in August 2022 when it became involved in a legal battle with bankrupt crypto-lending platform Celsius Network. Celsius Network demanded the return of approximately $17 million in digital tokens.
It is worth noting that BitGo had entered into a preliminary agreement in early June to purchase 100% of the shares of Prime Core Technologies, which includes Prime Trust. However, the custodian has now decided to terminate the acquisition.
This news comes as a surprise to many in the industry, as the acquisition would have further strengthened BitGo’s position in the cryptocurrency storage market. BitGo is known for its secure storage solutions and has been a trusted custodian for many institutional investors.
The reasons behind BitGo’s decision to terminate the acquisition are unclear at this time. However, the company’s commitment to building trust in digital assets remains unchanged. It will be interesting to see how this decision impacts both BitGo and Prime Trust in the future.
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How might BitGo’s decision impact both their own reputation as a secure custodian and Prime Trust’s position in the cryptocurrency storage market
Cryptocurrency custodian BitGo has announced that it will not be proceeding with the acquisition of crypto storage company Prime Trust. In a tweet, BitGo stated that despite considerable effort, they were unable to find a way forward with Prime Trust. The decision was made with careful consideration, but BitGo remains committed to their mission of providing trust in digital assets.
Prime Trust, founded in 2016, offers developer tools and APIs for fintech and crypto projects, specializing in payment systems, compliance, liquidity, settlement, and digital asset custody. The company boasts around 700 clients in the industry and raised $107 million in June 2022 to support its growth.
However, Prime Trust faced legal issues in August 2022 when it became embroiled in a legal battle with bankrupt crypto-lending platform Celsius Network over the return of $17 million in digital tokens.
While the decision by BitGo not to proceed with the acquisition comes as a surprise to industry observers, it is not clear why the deal was terminated. BitGo’s reputation as a secure custodian has made them a trusted choice for institutional investors, and the acquisition would have further solidified their position in the cryptocurrency storage market.
The impact of this decision on both BitGo and Prime Trust remains to be seen, but neither company has wavered in their commitment to building trust in digital assets. As the industry continues to evolve, it will be interesting to watch how this development affects both parties. Stay updated on the latest news in the cryptocurrency industry by following ForkLog on social networks.
This setback for the cryptocurrency storage industry highlights the challenges faced by companies like BitGo in finding reliable partners. It emphasizes the need for comprehensive due diligence and careful selection when it comes to acquisitions in this rapidly evolving market.
This setback in the cryptocurrency storage industry with Custodian BitGo terminating the acquisition of Prime Trust is unfortunate. It highlights the challenges and uncertainties that continue to plague the sector.