This article is maintained to keep everyone updated on Prime Trust and the Compass wallet. The Compass Wallet will remain disabled until we establish a new banking partner. Below is a list of communications we have received from Prime Trust.
The last known information is that Prime Trust as a business entity is being evaluated under receivership. Funds on Compass Wallet are a part of this receivership process. We will continue to inform customers impacted by this as we learn more.
If you have sold a unit on the Markteplace you will be contacted and asked to complete an ID-Pal link to verify yourself for payout. The ID-Pal app must be done on a mobile device.
September 25th:
Prime Trust and three affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code on August 14, 2023.
Further information regarding the bankruptcy cases, your mining rewards, or claims can be obtained online at https://cases.stretto.com/primetrust/ or by contacting counsel for the Debtors or counsel for the Unsecured Creditors Committee.
Bankruptcy counsel for the Debtors is:
Maris J. Kandestin
MCDERMOTT WILL & EMERY LLP
1000 N. West Street, Suite 1400
Wilmington, Delaware 19801
Telephone: (302) 485-3900
Facsimile: (302) 351-8711
Email: mkandestin@mwe.com
-and-
Darren Azman
Joseph B. Evans
J. Greer Griffith
MCDERMOTT WILL & EMERGY LLP
One Vanderbilt Avenue
New York, New York 10017-3852
Telephone: (212) 547-5400
Facsimile: (646) 547-5444
Email: dazman@mwe.com
jbevans@mwe.com
Counsel for the Unsecured Creditors Committee is:
Donald J. Detweiler
Elazar A. Kosman
WOMBLE BOND DICKINSON (US) LLP
1313 North Market Street, Suite 1200
Wilmington, Delaware 19801
Telephone: (302) 252-4320
Facsimile: (302) 252-4330
Email: don.detweiler@wbd-us.com
Email: elazar.kosman@wbd-us.com
If you have any questions, check out our FAQs and feel free to contact Stretto online at https://cases.stretto.com/primetrust/
July 20th:
Dear Valued Clients and Partners,
Thank you for your continued patience as Prime Trust works with the Nevada Financial Institution Division. Below is the latest status:
- Last Friday, the Court granted the Petition and appointed John Guedry as receiver for Prime Trust. Over the next few weeks, we will be bringing him up to speed and will provide more in-depth updates as they become available. The Cease & Desist has been modified so that the receiver is permitted to operate Prime Trust LLC consistent with the Court Order of July 14, 2023.
- On August 22nd, 2023, there will be a hearing to determine whether the Petition should be permanently granted.
Sincerely,
Prime Trust, LLC
June 30th:
Dear Valued Clients and Partners,
Thank you for your continued patience as Prime Trust works with the Nevada Financial Institution Division. We intend to send out more regular updates as new information becomes available subject to the direction of the receiver (when appointed). Below is the latest status:
- Prime Trust is still subject to the Cease and Desist order and is complying with that order. As a result, all deposits and withdrawals of fiat and digital assets for custody continue to be halted.
- Nevada financial regulators have filed a petition for appointment of receiver, temporary injunction, and permanent relief of receivership with the Eighth Judicial District Court of the State of Nevada. While the petition is pending, we do not have further information.
- Once a receiver is assigned, we hope to be able to provide more in-depth updates on next steps. In the meantime, we have paused billing notifications until the receiver can provide further guidance.
Sincerely,
Prime Trust
June 22nd:
Dear Valued Clients and Partners,
Prime Trust regretfully informs all of you that, by order of the Nevada Financial Institution Division received on Wednesday, June 21st, 2023, Prime Trust is halting all deposits of fiat and digital assets for custody. We will also be halting all withdrawals of fiat and digital assets for custody. Please take action immediately to stop sending client custody assets to Prime Trust, especially digital assets. During this period, we will suspend certain business expansion activities such as signing new customer contracts. Prime Trust is actively engaging the NV FID to determine next steps to remediate any concerns and return to business as usual as soon as possible. We sincerely apologize for this inconvenience and ask you to be patient with us while we work with the regulators to provide more clarification on the next steps.
Sincerely,
Prime Trust