Troubled crypto custodian Prime Trust's subsidiary Banq has filed for Chapter 11 bankruptcy protection in the U.S. District Court of Nevada. The firm reported $17.72M in assets and $5.4M in liabilities in the court filings. Banq offered mobile software development kits (SDKs) to allow for easy integration of all funding services in crypto and fiat currencies. - The bankruptcy filing pointed out that Banq's three former executives unauthorizedly transferred its trade secrets, confidential data, and $17.5M of technological assets to Fortress NFT Group, which they founded.
- The company also previously hit the headlines when it sued Fortress NFT Group over the launch of the NFT platforms Fortress NFT and Planet NFT through stealing its confidential trade information and fraudulent activities.
- In the lawsuit, Banq claimed that its former CEO, Scott Purcell, initially tried to direct Banq's focus to the NFTs but faced opposition from the board and shareholders.
- Earlier in 2023, a U.S. judge ordered the case to go to arbitration.
The bankruptcy filing came shortly after Prime Trust reached an acquisition deal with rival BitGo after it faced financial difficulties due to its exposure to the bankrupt crypto lender Celsius. |
