After Prime Trust filed for bankruptcy protection, the company’s interim CEO Jor Law cited excessive spending, losses on the stablecoin terrausd, and problems accessing customer funds held in cold storage wallets as contributing factors.
From Cold Storage to Cold Reality: The Dramatic Decline of Prime Trust
In a declaration filed along with the bankruptcy petition on August 24, Prime Trust’s current CEO Jor Law summarized the company’s slide into insolvency. He stated that prior management engaged in lavish spending despite depressed revenues during the “crypto winter” of 2022.
This included $10.5 million in expenses against just $3.1 million in revenue in October 2022. The company also lost $6 million in customer funds and $2 million of its own corporate treasury money after investing in the failed stablecoin terrausd.
However, the main factor precipitating Prime Trust’s downfall was what Law described as a “Wallet Event.” In 2018, the company set up a cold storage wal
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