BitGo announced that it has terminated the acquisition agreement with Prime Trust, a crypto custody company. BitGo had announced its acquisition plans two weeks ago, but stated that the decision was not taken lightly and that they remain committed to their mission of providing trust in digital assets. The company also mentioned that this decision was made after significant effort and exploration of alternative paths forward.
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.— BitGo (@BitGo) June 22, 2023
Prime Trust customers, on the other hand, expressed their concerns about the future of the company.
In early June, BitGo Holdings announced that it had signed a non-binding letter of intent to acquire 100% of Prime Core Technologies, the parent company of Prime Trust. The company stated that this agreement would bring business continuity and long-term stability to Prime Trust customers.
The Company Lost Several Customers, Including Binance.US
Prime Trust had been serving crypto companies since 2018 and claimed to have around 700 fintech and crypto companies as its clients. However, recently the company has lost several customers, including Binance.US. Additionally, the company was sued by the U.S. Securities and Exchange Commission (SEC) for alleged violations of the country’s securities laws.
Furthermore, this SEC lawsuit has sparked speculation on social media regarding a company referred to as “Trust Company B,” with Prime Trust being considered as the likely candidate. Prime Trust customers are deeply concerned about this situation and are demanding a detailed official plan regarding the company’s future.
Finally, with BitGo terminating the acquisition agreement with Prime Trust, Prime Trust customers are expressing their concerns about the future of the company and the continuity of its services. However, no official statement has been made by the company regarding its future plans.