Prime Trust Lost $8M in Doomed Terra Stablecoin Investment, CEO Says

Crypto custodian Prime Trust lost $6 million in client funds and $2 million from its own treasury due to a failed investment in a stablecoin, adding to a series of mismanagement allegations in the crypto sector.

coindesk.com

Relevant topic timeline:

8/24/2023

Prime Trust parent company lost $8M investing in TerraUSD

Prime Core Technologies, the parent company of crypto custodian Prime Trust, reported losing approximately $8 million in client and treasury funds through investments in TerraUSD, contributing to its bankruptcy filing.

9/4/2023

Drake-Backed Crypto Casino Stake Loses $40M in 'Unauthorized' Transfers - Decrypt

Popular crypto betting platform Stake lost around $40 million in unauthorized transactions, with $16 million leaving the platform in Ethereum, Tether, USD Coin, and DAI, and an additional $25 million drained on Binance Smart Chain and Polygon, according to blockchain security experts.

9/19/2023

Crypto custody firm Prime Trust lays off 62 more employees amid bankruptcy

Prime Trust, a crypto custody firm that filed for bankruptcy in August, has notified its employees of possible layoffs within the next two months, following previous deep cuts to its workforce. The exact percentage of workers affected is unknown, and it remains uncertain if the potential job losses were previously reported. Bids for Prime Trust's assets are due in October, and the transaction may occur within the 60-day period indicated in the layoff notice.