According to PANews news on June 29, according to Decrypt, the Bitcoin investment application Swan Bitcoin quickly withdrew all the assets of Prime Trust a few weeks before the collapse of Prime Trust. Fortress leader Scott Purcell had previously worked for the Prime Trust until January 2021.


Many suspected that Swan Bitcoin could be recovered during Prime Trust’s bankruptcy process, although it withdrew before Prime Trust collapsed. However, Swan chief executive Cory Klippsten claimed this was not possible due to "legal structural precedent". Asked why Swan had not taken the step of taking over custody of assets internally, Klippsten said he doubted such an approach would raise regulatory issues, as he expected regulators to soon force the separation of brokerage and custody.
It follows yesterday's news that Nevada regulators have applied to take over Prime Trust.
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