Prime Trust, a crypto custodian, has filed for bankruptcy protection under Chapter 11 in Delaware, after discovering a gap in its customer funds.
The company reported in a filing on Aug.15 that it owes between $100 million to $500 million to 25,000 to 50,000 creditors, while its assets are worth only $50 million to $100 million.
The company said in a press release that it plans to file several motions with the Bankruptcy Court to help it explore all strategic options, including a possible sale of its assets and operations.
The company also said it expects to ask the court to allow it to continue paying its employees’ salaries and benefits.
The top five creditors of the company have claims of about $105 million in total — with the largest claim being $55 million.
