BitGo Calls Off Prime Trust Acquisition In The Crypto Custody Space

Cryptocurrency custody firm BitGo announced on Twitter the termination of its intended acquisition of Prime Trust.

The decision was reached after thorough evaluation and efforts to establish a feasible partnership. 

“After considerable effort and work to find a path forward with Prime Trust, BitGo has made the hard decision to terminate its acquisition of Prime Trust. This decision was not made lightly and BitGo remains committed to our mission to deliver trust in digital assets," the company stated.

An Acquisition That Seemed Promising

A mere fortnight ago, BitGo publicized its non-binding letter of intent to acquire Prime Trust.

While the specifics of the deal were kept under wraps, the acquisition was expected to grant BitGo entry into Prime Trust's suite of services including payment rails and a cryptocurrency Individual Retirement Account (IRA) fund.

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The acquisition was also seen as an opportunity for BitGo to expand its wealth management services, leveraging Prime Trust’s established market presence.

Troubles Brewing For Prime Trust

In the aftermath of BitGo’s announcement to call off the acquisition, it came to light that Prime Trust is facing regulatory hurdles.

Stably, a cryptocurrency exchange, communicated to its clientele that Prime Trust ceased all deposits and withdrawals due to an order from the Nevada Financial Institution Division.

Coinmetro, another player in the cryptocurrency exchange arena, revealed it had hit a roadblock in processing new U.S. dollar transactions due to Prime Trust suspending USD deposits and withdrawals.

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