Prime Trust, a Las-Vega-based provider of financial infrastructure for fintech and crypto firms, and some of its affiliates have filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware, the company said in a press statement.
The Chapter 11 filing follows the permanent appointment of John Guedry as Receiver for the Company and the appointment of John Guedry, John Wilcox, and Michael Wyse as the sole members of a special restructuring committee (Special Committee), it added.
Prime Trust, under the supervision and direction of the Special Committee, will continue to manage the businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court.
“The Company intends to file a number of motions with the Bankruptcy Court designed to facilitate the Company’s orderly evaluation of all strategic alternatives, including potentially a sale of the Company’s assets and operations as a going concern. It is anticipated that these motions will include requests to continue to pay wages and provide benefits to ongoing employees as usual,” the statement added.
in June, the Nevada Financial Institutions Division filed a court petition to place Prime Trust in receivership due to operating in an “unsafe and unsound manner.” Prime Trust was once a leading company in the digital asset sector, holding funds on behalf of FTX and Celsius Network.
