Not even two weeks after revealing its intent to buy Prime Trust, BitGo cancels the acquisition.
BitGo, a prominent digital asset custodian and wallet infrastructure provider, has recently called off its intended purchase of fintech infrastructure provider Prime Trust.
Announced via Twitter on June 22nd, the firm outlined that the decision was not a simple one to make.
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In its announcement, BitGo noted that despite calling off plans to acquire Prime Trust, the company remains committed to "deliver trust in digital assets."
After considerable effort and work to find a path forward with Prime Trust, BitGo has made the hard decision to terminate its acquisition of Prime Trust. This decision was not made lightly and BitGo remains committed to our mission to deliver trust in digital assets.
This surprising turn of events came less than two weeks after BitGo disclosed its non-binding letter of intent to purchase Prime Trust.
While the precise details of the deal remained undisclosed, the acquisition was set to give BitGo access to Prime Trust's cryptocurrency IRA fund and payment rails, as well as an opportunity to enhance its wealth management services.
On top of that, BitGo expected to integrate the Prime Trust’s Nevada Trust Company, expanding its network of regulated trust companies across different jurisdictions.
The cryptocurrency community took to Twitter to theorize potential reasons for this unexpected cancellation. Some rumors hinted at a cease and desist order that Prime Trust allegedly received from Nevada state regulators.
Adding fuel to the fire, court documents on June 13th disclosed that Banq, Prime Trust's payments subsidiary, had filed for bankruptcy protection in the United States. The document declared assets amounting to $17.72 million and liabilities of $5.4 million. This raises another question, whether the timing of Banq's bankruptcy filing adversely affected BitGo's proposed acquisition plan.
With the sudden termination of this acquisition, one can only wonder about the underlying reasons and potential ripple effects it might have on the involved entities. This scenario once again highlights the intricate and unpredictable nature of the rapidly evolving cryptocurrency market.
