- The company noted that they studied all the options, but did not find a solution.
- According to unconfirmed reports, the platform withdrew from the deal due to the regulator in Nevada
- CoinMetro Forced Withdrawal Freeze As Exchange Uses Prime Trust Infrastructure
Yesterday, June 22, cryptocurrency custodial service BitGo announced on its Twitter page that it was suspending the purchase of Prime Trust. The company noted that the decision was not easy for them.
“After considerable effort and work to find a way out of the Prime Trust situation, we have made the decision to pull out of the deal.” — says in the message.
Recall that BitGo announced its intention to buy out Prime Trust in early June. The company faced serious financial difficulties, and its subsidiary bank, Prime Trust Unit, even declared itself bankrupt.
However, BitGo’s announcement was not a fixed commitment. Therefore, the platform will not incur any additional costs when the agreement is terminated.
By unconfirmed information, the real reason for the rejection of the deal is the pressure on Prime Trust from the regulator in Nevada. Allegedly, the infrastructure provider received a cease-and-desist order.
Also recall that last year, Prime Trust was at the epicenter of the scandal because of the alleged connection with the former member of the top management of FTX Nishad Singh. Allegedly, the company participated in the financing of Democrats in Oregon in the amount of $500,000.
It is noteworthy that the CoinMetro exchange froze the withdrawal of funds against the backdrop of this news. The platform uses the Prime Trust payment infrastructure and simply became a hostage to the situation.