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.

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

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

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

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

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 

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 

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

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

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