CoinVoice recently learned that on August 28, Jor Law, CEO of cryptocurrency custodian Prime Trust, explained the reasons for Prime Trust's difficulties in a document filed with the U.S. Bankruptcy Court in Delaware last Thursday. He said that the company's former leaders blindly increased company spending during a period of low revenue, causing Prime Trust to lose $7 million and $8.4 million in October and November last year.
In addition, the court documents stated that the company had opened a "98f wallet" for holding tokens in March 2018, and then Prime Trust transferred its wallet to a system operated by the digital security platform Fireblocks, but the company did not realize that the migration from the old wallet to the new system was incomplete, nor did it realize that it was still providing customers with addresses that allowed customers to deposit funds into the "98f wallet." The errors were discovered when a customer asked the company to make a large ETH withdrawal and the company was unable to fulfill it. To this day, Law said that Prime Trust still cannot access the 98f wallet. Law said that "certain company employees" then began to use fiat currency in customer accounts to buy ETH and used more than $76 million in funds to meet withdrawal requests between December 2021 and March 2022. (decrypt) [Original link]
