After negotiating a tentative agreement to buy rival Prime Trust earlier this month for an unknown sum amid rumors that the company was on the verge of bankruptcy, cryptocurrency custodian BitGo canceled the deal.After “considerable effort and work to find a path forward with Prime Trust,” BitGo terminated the process, the company announced on Thursday. “This decision was not made lightly, and BitGo remains committed to our mission to deliver trust in digital assets.”
According to a source at one of Prime Trust’s former clients, the company has been losing clients and money to rivals for weeks as suspicions about its operations grow.After BitGo tweeted this, the cryptocurrency exchange Stably informed its users that Prime Trust has stopped accepting deposits and withdrawals at the request of the Nevada Financial Institution Division. Due to Prime Trust’s suspension of USD deposits and withdrawals, Coinmetro, another cryptocurrency exchange, also stated that it was unable to execute new U.S. dollar