Crypto Custody Firm BitGo Cancels Acquisition of Rival Prime Trust

Cryptocurrency custodian BitGo terminated its acquisition of rival Prime Trust after earlier this month reaching a preliminary agreement to for an undisclosed amount amid speculation it was facing bankruptcy.

BitGo ended the process after "considerable effort and work to find a path forward with Prime Trust," the firm . "This decision was not made lightly and BitGo remains committed to our mission to deliver trust in digital assets."

Prime Trust has had a rocky journey in recent months. It in November, and in January just days after . Its subsidiary Banq last week. The firm has been losing clients and deposits to competitors for weeks amid mounting concerns over its business, a source at one of its former clients told CoinDesk.

Following BitGo's tweet, crypto exchange Stably told customers that by order of the Nevada Financial Institution Division. Fellow crypto exchange Coinmetro also said because Prime Trust had suspended USD deposits and withdrawals.

Palo Alto, California-based BitGo was itself almost bought by Mike Novogratz's crypto merchant bank Galaxy Digital (GLXY), until in August. BitGo took Galaxy to court for $100 million in damages in a case that earlier this month.

The firms did not respond to CoinDesk's request for further comment.

UPDATE (June 22, 14:10 UTC): Adds additional paragraph about Prime Trust losing clients and depositors and adds second byline.

UPDATE (June 22, 15:11 UTC): Adds Stably, Coinmetro announcements in fifth paragraph.

UPDATE (June 22, 15:57 UTC): Adds Prime Trust CEO loss, layoffs in third paragraph, cancellation of Galaxy's acquisition of BitGo in fifth.

Edited by Parikshit Mishra and Sheldon Reback.