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Prime Trust Owned Banq Files for Bankruptcy Amid Internal Struggles

Prime Trust Owned Banq Files for Bankruptcy Amid Internal Struggles

Prime Trust subsidiary Banq files for bankruptcy. It had internal conflicts due to unauthorized transfers of over $17.5 million. Banq accused its former officers of stealing trade secrets.

Prime Trust subsidiary Banq has filed for bankruptcy as a result of “internal struggles and unauthorized transfers.”

Prime Trust has been in legal trouble since last year, and now its subsidiary software company Banq filed for bankruptcy in the District of Nevada.

Banq Crumbles to Internal Disputes 

In its filing, Banq mentioned unauthorized transfers by former officers of computers, trade secrets, proprietary information and technology, and business records, to Fortress NFT Group, Inc.

Banq’s bankruptcy filing claims that former officers made the transfers worth $17.5 million. Last month, according to JD Supra, Banq filed a suit against its former CEO, CTO, and CPO for violating the Nevada Uniform Trade Secrets Act.

Banq has accused the officers of stealing trade secrets to start Fortress NFT Group.

Source: Chapter11Dockets

It is worth noting that on Sunday, stablecoin provider TrueUSD (TUSD) paused minting via Prime Trust. Then on Tuesday, the crypto investment platform Haru Invest suspended deposits and withdrawals due to issues with a service partner.

Learn more about the non-fungible tokens (NFTs) here.

Prime Trust’s legal troubles escalated in August 2022 due to a lawsuit from crypto lender Celsius. Through the lawsuit, Celsius is demanding a handover of over $17 million worth of assets in Bitcoin (BTC), Ethereum (ETH), Celsius Network (CEL), and USDC.

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