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 Marketplace, 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.
March 29th, 2024:
As a courtesy for customers whose funds have been frozen with Prime Trust, we would like to provide the following information regarding the developments in the bankruptcy cases. In an effort to be transparent, the information comes from other third parties, not Compass Mining, and Compass Mining makes no warranties regarding its accuracy. There is no standard or precedent, particularly in a crypto case, from which assumptions can be drawn regarding how long the proceedings will take.
On December 21, 2023, the Bankruptcy Court confirmed the Debtors’ (Prime Trust’s) Chapter 11 plan (the “Plan”). The Plan provides for an orderly liquidation of the Debtors’ assets by the Wind Down Debtors or Plan Administrator. These assets include claims arising from or related to the Debtors’ loss of, or loss of access to, assets held within, the 98f Wallet (the Debtors’ legacy cold storage wallet with an address ending in 98f), and/or the Debtors’ use of cash or other assets to satisfy redemptions or withdrawals by customers following the loss of access to assets in the 98f Wallet.
As initially disclosed upon the bankruptcy filing, the Debtors have been unable to access the digital assets in the multi-sig 98f Wallet due to missing Hardware Devices and seed phrases. According to the Debtors, they have investigated recovering assets contained in the 98f Wallet. They claim to have made significant progress in gaining access to 98f, including obtaining copies of confirmed Seed Phrases and partial Seed Phrases. However, they have not yet indicated they have gained access.
To provide creditors with information regarding the liquidation of the assets, the Plan Administrator has established a website. Among other information, the Plan Administrator indicates it will share information with customers about the Plan Administrator’s determinations regarding whether accounts at Prime Trust, LLC and the fiat and cryptocurrency deposited by customers in those accounts are property of the Debtors’ bankruptcy estates or property of the customers under applicable law. The website address is https://primetrustwinddown.com/.
Additional information about the bankruptcy case may be obtained by calling the case information line at 888.533.4753 (toll-free) and 303.536.6996 (international). You may also submit an inquiry via email at PrimeCoreInquiries@stretto.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
September 25th, 2023:
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, 2023:
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, 2023:
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, 2023:
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