Banq, a subsidiary of crypto custodian Prime Belief, filed for chapter within the U.S. District Court docket of Nevada on June 13. Banq focuses on fee processing for cryptocurrency companies.
Within the chapter submitting, the agency listed property of $17.72 million and liabilities amounting to $5.4 million.
The timing of the chapter submitting is notable, coming lower than every week after Prime Belief’s guardian firm, Prime Core Applied sciences, was acquired by crypto custodian BitGo, pending regulatory approvals.
The acquisition might probably influence the way forward for Banq and its relationship with Prime Belief.
“Unauthorized switch” of $17.5 million
Within the chapter submitting, Banq revealed that $17.5 million of its property have been despatched to Fortress NFT Group in an “unauthorized switch,” which can have contributed to the corporate’s monetary troubles.
The submitting additional revealed that the unauthorized switch by former Banq officers additionally included commerce secrets and techniques and proprietary data.
Fortress NFT Group was based by Banq’s former CEO, CTO, and CPO.
Banq has instigated authorized motion over allegations that the previous C-suite workers stole commerce secrets and techniques to launch Fortress NFT and engaged in fraud to cowl their tracks.
In January, the courtroom ordered all events to resolve the matter in arbitration, which continues to be ongoing and will influence Banq’s chapter consequence.
Prime Belief’s struggles
Prime Belief’s troubles started when Celsius sued the custodian in 2022 for allegedly withholding $17 million.
Stablecoin TrueUSD (TUSD), which makes use of Prime Belief as a banking companion, mentioned final week that it was halting TUSD minting on Prime Belief till additional discover.
TUSD quickly misplaced its greenback peg following the announcement, inflicting concern amongst buyers – however recovered its peg value inside three days.
Following TUSD’s announcement, customers reported points with TUSD redemption, although the group assured operations have been high quality.
Journalist at CryptoSlate
In 2020, Monika immersed herself in crypto, sustaining skepticism but firmly believing blockchain might handle key points like monetary disparity and transparency. A book-lover, she’s additionally a passionate meals fanatic.
Analyst at CryptoSlate
Samuel Wan, a finance skilled turned full-time crypto content material creator, values particular person autonomy and private freedom in his pursuits.
