Crypto Custody Firm BitGo Cancels Prime Trust Acquisition

Cryptocurrency custodian BitGo has terminated its acquisition of rival custody specialist Prime Trust.

BitGo made the decision after “considerable effort and work to find a path forward with Prime Trust,” the firm tweeted on Thursday.

“This decision was not made lightly and BitGo remains committed to our mission to deliver trust in digital assets,” BitGo added.

Prime Trust has been losing clients and deposits to competitors for weeks amid mounting concerns over its business, a source at one of the former client told CoinDesk.

BitGo reached a preliminary agreement to acquire Prime Trust earlier this month following speculation that the Nevada-regulated custodian was facing bankruptcy.

The firms did not immediately respond to CoinDesk’s request for further comment.

UPDATE (June 22, 14:10 UTC): Adds additional paragraph about Prime Trust losing clients and depositors and adds second byline.