Prime Core Technologies Reports $8 Million Shortfall from TerraUSD Investments
Prime Core Technologies, the parent company of crypto custodian Prime Trust, recently disclosed an $8 million loss from investments in TerraUSD (USTC), according to court filings. The losses include $6 million in client funds and $2 million in treasury funds, which were invested under previous management. The company attributes these losses and increased expenditures as key factors leading to its bankruptcy declaration. Regulators also revealed that Prime Trust had used customer funds to cover withdrawal requests, resulting in a debt of $82 million, including unaccounted deposits and fiat currency owned by customers. The bankruptcy proceedings will allow the company to explore various alternatives, such as potential asset sales. Coinbase director Conor Grogan claimed that Prime Trust bought $77 million worth of Ethereum (ETH) on the open market at the market peak to meet withdrawals, as they allegedly provided clients with a wrong deposit address.
