Swan Bitcoin sued for nearly $1B over pre-bankruptcy transfers from Prime Trust
Swan Bitcoin has been sued for allegedly using insider access to pull nearly $1 billion in Bitcoin and cash from Prime Trust days before its 2023 bankruptcy filing.
The post-bankruptcy trust for Prime Trust has filed suit against Swan Bitcoin, alleging the Bitcoin services company exploited insider knowledge to pull nearly $1 billion in assets from the custodian days before its collapse.
The complaint, filed in Delaware bankruptcy court, accuses Electric Solidus, the corporate entity behind Swan, of receiving over $24.6 million in cash, 11,994 Bitcoin (BTC) currently worth around $923 million, roughly 5 million USDt (USDT) and smaller amounts of other digital assets before Prime Trust’s August 2023 bankruptcy.
At the center of the allegations is an unidentified Prime Trust senior executive who, while working at the company, was also a paid adviser to Swan through a side arrangement dating back to July 2019.