BitGo Terminates Acquisition Of Prime Trust

BitGo terminated its acquisition of Prime Trust after reaching a preliminary agreement to acquire the firm for an undisclosed amount.

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The decision was made after "considerable effort and work to find a path forward with Prime Trust.

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Prime Trust has had a rocky journey in recent months, with CEO Tom Pageler being replaced in November, layoffs.

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The firm has been losing clients and deposits to competitors amid mounting concerns over its business

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Following BitGo's tweet, crypto exchange Stably told customers that Prime Trust was halting all withdrawals by order of the Nevada FID.

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Fellow crypto exchange Coinmetro also said it was unable to process new U.S. dollar transactions because Prime Trust had suspended USD deposits and withdrawals

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Palo Alto, California-based BitGo was itself almost bought by Mike Novogratz's crypto merchant bank Galaxy Digital (GLXY), until the $1.2 billion deal was canceled in August

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BitGo took Galaxy to court for $100 million in damages in a case that was dismissed by a Delaware judge earlier this month

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The termination of the acquisition is a blow to Prime Trust, which was facing bankruptcy speculation

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It is also a setback for BitGo, which had seen the acquisition as a way to expand its reach in the crypto custody market

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