Prime Trust's Mismanagement and Loss of Funds

Prime Trust, a Nevada-based trust associated with cryptocurrency, has come under scrutiny for losing nearly $100 million. Revelations from a bankruptcy declaration indicate serious management and operational issues within the company. One shocking revelation is that Prime Trust invested customer funds into Terra, a known Ponzi scheme, resulting in a loss of $6 million in customer deposits. Additionally, the company lost hardware wallets and seeds for a multi-signature wallet and used approximately $76 million in customer funds to buy more Ethereum to cover requested withdrawals. These actions suggest a breach of fiduciary duties and regulatory regulations. This case highlights the lack of oversight and enforcement by financial regulators in the cryptocurrency industry.