Prime Trust Lost $8M in Doomed Terra Stablecoin Investment, CEO Says

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A separate 2021 wallet bungle by the crypto custodian, taken into receivership in July, cost it $76 million, a court filing said

CEO’s statement the latest in a series of mismanagement allegations to plague the crypto sector.

Crypto custodian Prime Trust lost $6 million of client funds and $2 million from its own treasury in a doomed investment in the terraUSD algorithmic stablecoin, CEO Jor Law said in aLaw, who took his role on Nov. 29 after serving on the board, also cited a January 2021 incident in which customers were told to send funds to the wrong wallet, inaccessible to the company, after which the company had to spend $76 million to buy ether to fund withdrawal requests.

The witness statement filed as part of bankruptcy proceedings is the latest in a series of allegations of financial mismanagement and poor governance in the crypto sector, which has seen former executives including

 

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