Banqruptcy: Prime Trust subsidiary Banq files for bankruptcy protection

Banq reported it has $17.5 million in “causes of actions against third parties,” citing “claims against former officers and related entities”

article-image

KOTOIMAGES/Shutterstock modified by Blockworks

share

Banq, a Prime Trust subsidiary, filed for bankruptcy protection in Nevada on Tuesday, June 13. 

According to the filing, Banq has a little over $17 million with total liabilities of $5.4 million.

A lawsuit was filed in 2022 between Banq and Fortress NFT Group, which had former Banq executives — including a former CEO, chief technology officer, and chief product officer. 

The suit alleged “irreparable harm and damages to Banq based on Defendants’ theft of Banq’s corporate assets, trade secrets, and proprietary technology.”

“In abuse of their high-level roles, the Defendant Individuals used Banq’s resources to develop technology infrastructure for blockchain non-fungible tokens,” the lawsuit continued.

A judge ordered the case to go to arbitration following the signing of arbitration clauses by the former CEO in early 2023.

In the bankruptcy filing, Banq reported it also has $17.5 million in “causes of actions against third parties” citing “claims against former officers and related entities.”

The filing comes less than a week after BitGo signed a non-binding letter of intent to buy Prime Trust after Blockworks reported that Prime was attempting to raise $25 million quickly.

The terms of the deal were not disclosed, though BitGo would acquire 100% of “the equity of Prime Core technologies, the parent company of Prime Trust.”

The deal will not close until it receives the necessary regulatory approvals.

“This is a landmark transaction, leading a greater shift in the digital asset landscape toward a more secure and sustainable future. With the expected acquisition of Prime Trust, BitGo is well positioned to enhance its best-in-class, trusted solutions and to service the combined customer base,” BitGo’s CEO Mike Belshe said in a statement.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

recent research

Unlocked Advisory-min.png

Research

This report distills Blockworks Advisory’s research on incentive programs and their analysis, offering a foundation for designing future initiatives and advancing industry-wide standards. By highlighting key lessons and methodologies, we aim to empower protocols to make informed, data-driven decisions.

article-image

The company did about 2.5 times the amount of crypto-backed collateral financing in November compared to the rest of 2024, exec says

article-image

Programmable yield, seamless swaps and decentralized control are the hallmarks of a new stablecoin model

article-image

Crypto is “really exciting,” former SEC Commissioner Paul Atkins said in a podcast interview last year

article-image

Bitcoin is now the “seventh most valuable asset in the world by market cap, just behind the likes of Google and Amazon,” GSR’s Brian Rudick said

article-image

Many analysts expected bitcoin to top $100K before year-end, though it’s been on a post-election tear

article-image

Will investors take a 10% lower return to get access to a regulated investment wrapper?