Prime Trust, an American cryptocurrency custody company, announced today (15th) that the company has filed for bankruptcy protection in the state of Delaware in accordance with Chapter 11 of the Bankruptcy Code, and its three subsidiaries, Prime Core Technologies Inc., Prime IRA LLC and Prime Digital, LLC are also covered.

Prime Trust was ordered to cease operations in June this year due to a shortage of customer funds and accusations that it used customer funds to meet withdrawal requests, and was subsequently ordered by a court to enter administration.

Prime Trust said in a filing earlier today that it estimates it has between 25,000 and 50,000 creditors, estimated liabilities between US$100 million and US$500 million, and estimated assets between US$50 million and US$100 million. .

The company noted in a press release that Bank of Nevada President John Guedry has been appointed as receiver of Prime Trust and has been appointed as the sole member of the Special Reorganization Committee along with John Wilcox and Michael Wyse.

Nevada regulators revealed in June this year that Prime Trust was insolvent and users were unable to withdraw money, and immediately applied to take over the company and freeze all of the company's operations.

Prime Trust owes customers more than $85 million in fiat currency and only has about $3 million in fiat currency on hand, according to a bankruptcy filing in June. The company also owes $69.5 million in cryptocurrency to customers and holds $68.6 million in cryptocurrency on hand, the filing said.

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