Swan Bitcoin Faces Nearly $1B Lawsuit Over Prime Trust Transfers
Cointelegraph
Prime Trust's bankruptcy estate is suing Swan Bitcoin for allegedly using insider information to withdraw nearly $1 billion before the custodian's collapse.Summary
The bankruptcy trust for Prime Trust has filed a lawsuit against Swan Bitcoin (Electric Solidus), alleging the firm exploited insider information to move approximately $1 billion in assets out of the custodian shortly before its August 2023 bankruptcy. The complaint claims a senior executive at Prime Trust, who acted as a paid adviser to Swan, helped facilitate the transfer of over 11,994 Bitcoin and other assets through encrypted, auto-deleting communications. The litigation alleges that Swan prioritized its own withdrawals over other customers, potentially utilizing fraudulent transfers, and seeks full restitution of these assets to the bankruptcy estate.
(Source：Cointelegraph)