- This explains the problems of the TrueUSD stabelcoin
- And the payment stoppage at Haru Invest
Bank Banq (a “subsidiary” of cryptocastodial Prime Trust) declared itself bankrupt. They filed a petition to that effect in a court in Nevada County. The company indicated that it has about $17.72 million in assets and $5.4 million in liabilities.
The parent company of Prime Trust is now going through a takeover by its competitor, BitGo. Prime Trust’s problems began after the bankruptcy of Celsius, which was one of the provider’s largest clients.
Banq Prime Trust is a banking partner of the TrueUSD steiblocoin. The issuer recently suspended the issuance and redemption of stabelcoins, citing “Prime Trust liquidity problems.”
Another partner of Banq is the South Korean investment firm Haru Invest. Yesterday we wrote about the fact that they have suspended deposits and withdrawals for customers. The reasons for stopping Haru Invest cited problems with a partner provider, but they did not name the brand directly. Apparently, the bank in question is Banq.
It is interesting that Banq blames its problems on former management, who allegedly passed on trade secrets as well as private information and technology to the Fortress NFT Group. We’re talking about former CEO Scott Purcell. A man left Banq and founded his own startup, Fortress NFT. He took Banq’s computer hardware, intellectual property, and corporate infrastructure with him.