Crypto Custodian Prime Trust Files For Bankruptcy: What Stakeholders Need To Know

Crypto custodian Prime Trust LLC, along with some of its affiliates, has officially filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.

This move came after John Guedry was permanently appointed as the receiver for the company.

Additionally, a special restructuring committee was formed consisting of Guedry, John Wilcox and Michael Wyse, granted the authority by Judge Susan Johnson of the Eighth Judicial District Court of Nevada to oversee the company's Chapter 11 proceedings.

Under the guidance of the special committee, Prime Trust LLC will continue to operate its businesses as "debtors-in-possession," adhering to the stipulations of the bankruptcy code and the orders from the bankruptcy court.

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The company has plans to submit several motions to the bankruptcy court, aiming to systematically evaluate all strategic options.

This could potentially lead to the sale of the company's assets and operations.

Among the anticipated motions, there are requests to continue the usual payment of wages and benefits to its current employees.

Prime Trust LLC believes that initiating the Chapter 11 proceedings will offer a transparent process that maximizes value for the benefit of its clients and stakeholders.
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