Prime Trust
Prime Trust was a Bitcoin company in the Infrastructure category, founded in 2016 by Scott Purcell.
The Idea
A Nevada-chartered digital asset custodian that pitched itself as the infrastructure for 'crypto financial services.' Promised to simplify custody and compliance for institutional digital asset companies.
Early Traction
Prime Trust was positioned as a trusted infrastructure play, acquiring the necessary Nevada charter and regulatory licenses. It became a popular custodian for mid-market digital asset firms.
Peak Stats
Custodied assets for hundreds of digital asset companies, including the reserves behind the $3B+ TrueUSD stablecoin, with clients like FTX, Fold, and Securitize. At its 2021 peak it was settling up to $3.5B a month, and it raised a $107M Series B in June 2022.
Status Today
Collapsed in 2023. BitGo signed a term sheet to acquire Prime Trust's parent, Prime Core Technologies, in June 2023, but walked away roughly two months later citing insurmountable problems; the terms were never disclosed. Days after that deal was announced, Nevada regulators issued a cease-and-desist revealing Prime Trust could not honor customer withdrawals after losing access to a legacy wallet and dipping into customer funds to cover the gap. It filed for bankruptcy in August 2023, and the estate later pursued clawbacks from customers.
Why It Matters
Prime Trust's collapse showed that custody failures continue even as the industry matures. It's a reminder that the existence of a charter does not guarantee security or operational competence.