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Prime Trust Lost $8M in Doomed Terra Stablecoin Investment, CEO Says
A separate 2021 wallet bungle by the crypto custodian, taken into receivership in July, cost it $76 million, a court filing said
Updated Aug 29, 2023, 5:14 p.m. Published Aug 25, 2023, 9:46 a.m.
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- Crypto custodian Prime Trust invested millions in a stablecoin that then collapsed.
- 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 a Thursday court filing.
Law, 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.
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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 Celsius’ Alex Mashinsky and FTX’s Sam Bankman-Fried pleading not guilty to multiple fraud charges.
In June, Prime Trust – which shortly after was taken into receivership and filed for bankruptcy – had a customer shortfall of $861,000 in digital currency and nearly $83 million in fiat, Law told the Delaware court.
The May 2022 collapse of Terra – which sought to use automated trading to peg its value to the U.S. dollar – ricocheted across the sector, heralding a new crypto winter.
But even after then, the Prime Trust group “continued to ramp up spending, at times incurring seemingly excessive expenditures,” Law said, saying that in November 2022 the company – not yet run by him – spent $11.1 million against revenues of just $2.7 million.
Prime Trust had been set to be acquired by rival custodian BitGo, but the buyer pulled out amid concerns over Prime’s financial health in June – concerns that proved well-founded just five days later when Nevada regulators filed to place the company and its parent, Prime Core Technologies, into receivership.
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KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
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- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
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Senate Agriculture's crypto market structure draft peppered with Democrat pitches
The latest draft of the major crypto legislation has begun to be targeted with amendments as the Senate Agriculture Committee approaches its hearing next week.
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- Proposed amendments to the Senate Agriculture Committee's crypto market structure bill have been posted, and the Democrats filing the pitches are seeking to push a number of the points they've sought over months of negotiation.
- Democrat amendments include proposals for banning senior government officials from profiting off of crypto interests and a demand for filling the Commodity Futures Trading Commission before new rules can be put in place.
- The committee's markup hearing for the bill is currently scheduled for next week, though a winter storm threatens the U.S. capital.
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