Crypto custodian BitGo said June 8 It signed a term sheet to acquire 100% equity in Prime Core Technologies, the parent company of Prime Trust.
BitGo said the acquisition will allow BitGo to offer a “full suite of solutions” to institutional clients and fintech companies.
As a result of the transaction, BitGo will add Prime Trust’s Nevada Trust Company to its network of trust companies.
Prime Trust’s exchange network and APIs will also help power BitGo services, and BitGo will have access to Prime Trust’s banking partners and payment rail, crypto retirement funds (IRAs), and its various other services.
Prime Trust faced difficulties
Although BitGo promised profits from the agreement, some commentators reacted negatively due to Prime Trust’s bad reputation.
Bankrupt crypto lending firm Celsius sued Prime Trust in 2022, alleging that the company failed to return $17 million. Prime Trust ceased operations in Texas in January 2023 and announced it would cut one-third of its workforce in the same month.
rumors spread june 7 suggesting that a custodian in the crypto industry, considered by many to be Prime Trust, was on the verge of bankruptcy.