According to Decrypt, the Bitcoin investment application Swan Bitcoin quickly withdrew all assets from Prime Trust in the weeks leading up to its collapse. All Swan customers' assets are now held by the cryptocurrency custodian Fortress. However, Scott Purcell, the leader of Fortress, had previously worked for Prime Trust until January 2021.
Many suspect that Swan Bitcoin may be subject to recovery during the bankruptcy process of Prime Trust, despite its withdrawal before the collapse. However, Swan CEO Cory Klippsten claims that this is not possible due to "legal precedent." When asked why Swan did not take measures to internally take over asset custody, Klippsten stated that he suspects this approach would raise regulatory issues as regulatory authorities are expected to soon force the separation of brokerage and custody.
Earlier yesterday, it was reported that the regulatory agency in Nevada, USA, has applied to take over Prime Trust.
Original article link: https://bitgaai.com/2023/06/29/waimeiswanbitcoinyishixianchechutuoguanzhiprimetrustdesuoyou/