Prime Trust files for Chapter 11 bankruptcy protection in Delaware

Odaily Planet Daily News Cryptocurrency custodian Prime Trust has filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code in Delaware after facing a shortage of customer funds. In an Aug. 15 filing, Prime Trust said it had between 25,000 and 50,000 creditors, estimated liabilities between $100 million and $500 million, and estimated asset values ​​between $50 million and $100 million . John Guedry has been appointed receiver of the company and John Guedry, John Wilcox and Michael Wyse have been appointed sole members of the Special Restructuring Committee and will continue to manage its business in a "debtor-administered" capacity under the supervision and direction of the Special Committee. (Cointelegraph) As previously reported, in July of this year, the Court of the Eighth Judicial District of Nevada approved the state regulator’s bankruptcy receivership petition against the encryption custodian Prime Trust. The company's operations will be taken over by Bank of Nevada President John Guedry. According to a July 14 filing, judges at Nevada's Eighth Judicial District Court said the court found sufficient grounds to grant the petition after reviewing the merits and purview of the petition and relevant evidence, including the defendant's consent. The judge then ordered Prime Trust to appear in court on August 22 to explain why the state regulator's application should not be permanently granted. The original petition seeks to take over the company's day-to-day operations and overhaul all of its finances to determine the best option to protect Prime Trust customers, which is to restore the company and place it into private administration or liquidation.