Prime Trust Estate Sues Swan Bitcoin Over $970 Million in Pre-Bankruptcy Transfers
Prime Trust’s bankruptcy estate has sued Swan Bitcoin to recover roughly $970 million in assets that the complaint says Swan withdrew during the 90 days before Prime Trust’s August 2023 bankruptcy filing. The filing alleges the transfers included 11,994.08 BTC, worth about $938 million at current prices, as well as $24.66 million in cash, roughly $5 million in stablecoins and 91,144 XRP.
The complaint alleges Swan benefited from insider, non-public information after a senior Prime Trust executive who also advised Swan contacted Chief Executive Cory Klippsten before a meeting with Nevada regulators. Swan disputes the claims, saying Prime Trust held customer property in individually owned trust accounts and that those assets are not available to general unsecured creditors.
From the sources (3 posts)
@tftc21Prime Trust's bankruptcy estate has filed a 94-page complaint against Swan Bitcoin seeking to recover roughly $970 million in assets that Swan allegedly withdrew in the 90 days before Prime Trust's August 2023 bankruptcy filing. According
@tokenmetricsincSwan Bitcoin is being sued for nearly $1B over the 2023 collapse of crypto custodian Prime Trust. The lawsuit alleges Swan used inside information to pull 11,992 $BTC before Prime Trust filed for bankruptcy.
@blockspacePrime Trust filed a complaint against @Swan to recover nearly $1 billion in BTC & other assets (including XRP) The suit alleges Swan withdrew nearly $1 billion in a preference transfer within 90 days of Prime Trust's bankruptcy after