The parent company of cryptocurrency custodian Prime Trust, which is currently involved in a Chapter 11 bankruptcy proceeding under the U.S. Bankruptcy Code, has reported losing approximately $8 million through TerraUSD investments.
In an August 24 filing with the U.S. Bankruptcy Court in Delaware, Prime Core Technologies reported that it lost $6 million in customer funds and $2 million in financial funds through TerraUSD (USTC) investments under prior administrations, presumably at the time of the TerraUSD algorithmic stablecoin’s May 2022 when it collapsed. The company cited this investment, as well as an increase in expenses in October and November 2022, as one of the reasons why it was headed for bankruptcy.
A June filing revealed that Prime Trust owed its customers more than $85 million in fiat currency and $69.5 million in cryptocurrency. The company reportedly holds only about $2.9 million in fiat currency and $68.6 million in cryptocurrency.
