Coinbase Intervenes in Prime Trust Bankruptcy to Protect Customer Assets

user avatar

by Giorgi Kostiuk

2 years ago

Coinbase has taken steps to protect customer assets in the bankruptcy case of crypto custodian Prime Trust.

Prime Trust Bankruptcy Situation

Prime Trust, a crypto custodian, filed for bankruptcy on August 14, 2023, citing a sharp decline in customer deposits, revealing an $82 million deficit. The company's main issues are related to asset management and a significant amount of illiquid tokens.

Coinbase's Role in Protecting Clients

Coinbase, led by chief legal officer Paul Grewal, has filed a brief to ensure legal protection of client assets with custodians, based on Article 8 of the Uniform Commercial Code (UCC).

Importance of UCC Article 8

Article 8 of the UCC protects customer assets, whether they are in digital or traditional financial institutions, from unfair absorption during bankruptcy proceedings. This is a significant issue that affects custodial services in both the crypto and traditional finance sectors.

Coinbase's intervention in the Prime Trust bankruptcy case aims to set a precedent for protecting client assets amidst financial challenges faced by companies.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

BingX EU Achieves MiCA License to Expand Crypto Services in Europe

BingX EU MEGE zweite GmbH has obtained a MiCA license from Austria's FMA, allowing it to offer regulated crypto services across 29 EEA countries.

user avatarMohamed Farouk

Zcash Faces 11% Decline Amid Growing Market Concerns

Zcash has experienced an 11% decline in the past 24 hours, raising concerns about market stability and the impact of AI on cryptography.

user avatarElias Mukuru

HTX Strengthens Global Compliance and Showcases at TOKEN2049

HTX has made significant strides in global compliance initiatives while participating in TOKEN2049, a major event in the crypto industry held in Singapore.

user avatarDiego Alvarez

SEC Files Charges Against Richard Heart for Fraud

The SEC charged Richard Heart and his entities with conducting unregistered offerings of crypto asset securities.

user avatarMaria Fernandez

HTX Marks 13th Anniversary with Major Celebrations and Trading Events

HTX celebrated its 13th anniversary with major events, including the Anniversary Carnival and Trading Championship 3, highlighting its resilience in the crypto market.

user avatarKenji Takahashi

Richard Heart Arrested in Istanbul on Interpol Charges

Richard Heart, founder of Hex cryptocurrency, was detained in Istanbul under an Interpol Red Notice for aggravated tax fraud.

user avatarGustavo Mendoza

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.