Bitcoin · Decrypt
Swan Bitcoin Hit With Nearly $1 Billion Lawsuit Over Prime Trust Collapse
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Electric Solidus, Inc, which operates as Bitcoin services firm Swan Bitcoin, was named as a defendant in a newly filed lawsuit in Delaware Bankruptcy Court that aims to recover nearly $1 billion worth of cryptocurrency linked to the 2023 collapse of Prime Trust.
Key facts
- The exposure stated in the filing includes around $22.4 million in USD, as well as $5 million in dollar-backed stablecoins and 91,444 XRP, or $126,000 worth of the Ripple-linked token
- Before its bankruptcy filing, Swan could transfer nearly $1 billion worth of assets at today’s prices, led by 11,992 BTC currently valued around $917 million, that the suit alleges belongs to Prime
- Electric Solidus, Inc, which operates as Bitcoin services firm Swan Bitcoin, was named as a defendant in a newly filed lawsuit in Delaware Bankruptcy Court that aims to recover nearly $1 billion
- On May 25, 2023, in the midst of these communications and one day before Prime’s meeting with Nevada FID, Swan notified Prime that it wanted to transfer its entire business from Prime,” the filing
Summary
PCT Litigation Trust sued financial services firm Swan Bitcoin seeking repayment of nearly $1 billion in assets. The lawsuit alleges that Swan used inside information to avoid significant losses from the Prime Trust collapse in 2023. The suit seeks repayment of nearly 12,000 Bitcoin along with stablecoins, XRP, and more. The suit, filed by PCT Litigation Trust—a trust created for the distribution of assets and litigation pursuit related to Prime Core Technologies—claims that Swan could avoid major losses in 2023 when the former crypto custodian was forced to shut down and file for bankruptcy, citing the firm’s “unrivaled access to inside information.” The suit was first reported by Blockspace.