{"id":334076,"date":"2023-06-14T10:28:51","date_gmt":"2023-06-14T09:28:51","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=334076"},"modified":"2023-06-14T10:28:51","modified_gmt":"2023-06-14T09:28:51","slug":"prime-trust-subsidiary-banq-declares-bankruptcy","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/prime-trust-subsidiary-banq-declares-bankruptcy\/","title":{"rendered":"Prime Trust subsidiary Banq declares bankruptcy"},"content":{"rendered":"<p>Banq, a subsidiary of crypto custodian Prime Trust, filed for bankruptcy in the U.S. District Court of Nevada on June 13. Banq specializes in payment processing for cryptocurrency businesses.<\/p>\n<p>In the bankruptcy <a href=\"https:\/\/www.courtlistener.com\/docket\/67498178\/banq-inc\/\">filing<\/a>, the firm listed assets of $17.72 million and liabilities amounting to $5.4 million.<\/p>\n<p>The timing of the bankruptcy filing is notable, coming less than a week after Prime Trust's parent company, Prime Core Technologies, was <a href=\"https:\/\/cryptoslate.com\/bitgo-to-acquire-100-equity-in-prime-trust-parent-following-latters-bankruptcy-rumors\/\">acquired<\/a> by crypto custodian BitGo, pending regulatory approvals.<\/p>\n<p>The acquisition could potentially impact the future of Banq and its relationship with Prime Trust.<\/p>\n<h2>&#8220;Unauthorized transfer&#8221; of $17.5 million<\/h2>\n<p>In the bankruptcy filing, Banq revealed that $17.5 million of its assets were sent to Fortress NFT Group in an &#8220;unauthorized transfer,&#8221; which may have contributed to the company's financial troubles.<\/p>\n<p>The filing further revealed that the unauthorized transfer by former Banq officers also included trade secrets and proprietary information.<\/p>\n<p>Fortress NFT Group was founded by Banq's former CEO, CTO, and CPO.<\/p>\n<p>Banq has instigated <a href=\"https:\/\/www.jdsupra.com\/legalnews\/nft-company-seeks-to-avail-itself-of-6218686\/\">legal action<\/a> over allegations that the former C-suite employees stole trade secrets to launch Fortress NFT and engaged in fraud to cover their tracks.<\/p>\n<p>In January, the <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nvd.156303\/gov.uscourts.nvd.156303.78.0.pdf\">court<\/a> ordered all parties to resolve the matter in arbitration, which is still ongoing and could impact Banq's bankruptcy outcome.<\/p>\n<h2>Prime Trust's struggles<\/h2>\n<p>Prime Trust's troubles began when <a href=\"https:\/\/www.cnbc.com\/2022\/10\/20\/cryptocurrency-service-provider-agrees-to-return-17-million-to-digital-lender-celsius-.html\">Celsius<\/a> sued the custodian in 2022 for allegedly withholding $17 million.<\/p>\n<p>Stablecoin TrueUSD (TUSD), which uses Prime Trust as a banking partner, said last week that it was halting TUSD minting on Prime Trust until further notice.<\/p>\n<p>TUSD temporarily lost its dollar peg following the announcement, causing concern among investors &#8211; but <a href=\"https:\/\/cryptoslate.com\/tusd-regains-1-parity-after-three-day-depeg\/\">recovered<\/a> its peg price within three days.<\/p>\n<div class=\"article-contentstyles__ArticleSectionWrapper-sc-1lrs40v-1 iPfRmh\">\n<div id=\"at-content-section-2\" class=\"at-content-section\">\n<div class=\"contentstyle__StyledWrapper-g5cdrh-0 ipXuoZ composer-content\" data-submodule-name=\"composer-content\">\n<p>Following TUSD's announcement, users <a href=\"https:\/\/cryptoslate.com\/tusd-regains-1-parity-after-three-day-depeg\/\">reported<\/a> issues with TUSD redemption, though the team assured operations were fine.<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Banq, a subsidiary of crypto custodian Prime Trust, filed for bankruptcy in the U.S. District Court of Nevada on June 13. Banq specializes in payment processing for cryptocurrency businesses. In the bankruptcy filing, the firm listed assets of $17.72 million and liabilities amounting to $5.4 million. The timing of the bankruptcy filing is notable, coming [&hellip;]<\/p>\n","protected":false},"author":1386,"featured_media":334091,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77901,60793],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Prime Trust subsidiary Banq declares bankruptcy<\/title>\n<meta name=\"description\" content=\"The bankruptcy comes less than a week after custodian BitGo agreed to acquire Prime Trust&#039;s parent company.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/prime-trust-subsidiary-banq-declares-bankruptcy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Prime Trust subsidiary Banq declares bankruptcy\" \/>\n<meta property=\"og:description\" content=\"The bankruptcy comes less than a week after custodian BitGo agreed to acquire Prime Trust&#039;s parent company.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/prime-trust-subsidiary-banq-declares-bankruptcy\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-14T09:28:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/06\/bankruptcy-.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Monika Ghosh\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Monika Ghosh\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/prime-trust-subsidiary-banq-declares-bankruptcy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/prime-trust-subsidiary-banq-declares-bankruptcy\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/#person\",\"name\":\"Monika Ghosh\",\"url\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/08\/monika-ghosh-author-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/08\/monika-ghosh-author-300x300.jpg\",\"caption\":\"Monika Ghosh\"},\"jobTitle\":\"Former Reporter\",\"description\":\"Monika started reading about crypto in 2020 and went deeper and deeper down the rabbit hole. 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