Prime Trust freezes withdrawals after BitGo takeover fails

The pioneer BitGo no longer wishes to acquire its rival Prime Trust. The crypto-custody company a suspended the withdrawals on its platform following thediscontinued of the transaction.

The American depositary BitGo has announced backtracking as part of the buyback from Prime Trustanother firm specializing in crypto-custody.

After considerable effort and work to find a way forward with Prime Trust, BitGo has made the difficult decision to terminate the acquisition of Prime Trust.” tweeted Thursday the California-based company without further clarification.

Early June, BitGo reported that it had reached a preliminary agreement to acquire Prime Core Technologies, the parent company of Prime Trustto strengthen its digital asset custody services.

In parallel with the abandonment of the transaction, Stablya crypto-fiat ramp partner of Prime Trust, said the latter had frozen operations on its platform, including withdrawals.

Our regulated custodian PrimeTrust has temporarily suspended all deposits and withdrawals. While Prime Trust continues to work to restore normal operations as quickly as possible, we are also working diligently on integrating new depository partners.” tweeted yesterday Stably.

According to Stably, Prime Trust was forced to pause operations by order of the Nevada Division of Financial Institutions.

Last week, Banqa subsidiary of Prime Trust, filed for bankruptcy.

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