Prime Trust, the now-bankrupt company, is suing Strike, a Bitcoin payment service, alleging that Strike withdrew almost $29.5 million and 1,939 Bitcoin shortly before Prime Trust filed for bankruptcy. This lawsuit is sparking debate about whether other cryptocurrency companies anticipated Prime Trust’s financial troubles and took steps to safeguard their own funds.
Prime Trust Estate Targets Strike Withdrawals
The recent complaint claims that Strike took out almost $29.5 million and 1,939 Bitcoin from Prime Trust in the weeks leading up to the company’s bankruptcy filing.
The document points to a significant transfer of 1,350 Bitcoin that happened on June 2, 2023, just before Prime Trust faced regulatory action.
According to filings related to Prime Trust’s bankruptcy, Strike executives were aware of significant financial and operational issues at the company before these problems became public.
The lawsuit claims Strike was unfairly prioritized, with its customer funds being quickly withdrawn from Prime Trust while other users were left vulnerable when the platform failed.
Legal filings also mentioned Strike’s bankruptcy case, where the company stated it moved money to outside accounts to safeguard both its own finances and the funds of its customers.
Prime Trust Collapse Shocked the Crypto Industry
Prime Trust used to be a leading company in the crypto world, providing essential services like securely storing digital assets and supporting the infrastructure for exchanges, financial technology companies, and other businesses dealing with cryptocurrency.
The company failed in 2023 after Nevada officials found it had mishandled finances, lost customer money, and had serious operational problems.
The company later entered receivership before filing for bankruptcy protection.
The failure of Prime Trust caused significant worry throughout the crypto world, as numerous companies depended on them to securely hold assets, process traditional currency transactions, and manage payments.
Estate Wants BTC and Millions Returned
The legal team handling Prime Trust’s assets is attempting to recover at least $13.9 million and approximately 1,758 Bitcoin through a current lawsuit.
This case revolves around U.S. bankruptcy laws that prevent companies close to failing from giving preference to some creditors over others before going bankrupt.
If the court rules in favor of Prime Trust’s estate, the case could set a significant legal standard for handling large withdrawals made by institutions right before they go bankrupt in the crypto world.
This legal case also points to increasing dangers with companies that hold large amounts of cryptocurrency for others. It’s important for both big and small investors that these companies are open about how they operate and manage their funds.
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2026-05-20 13:24