Service Updates

On July 18th, 2025, the Delaware Bankruptcy Court entered an Order granting the Plan Administrator’s motion concerning Prime Trust. The accompanying Opinion and the Order’s “Distribution Procedures” set the framework that now governs your claim.

What the Court decided

You must read the Court's Order and Opinion documents yourself to understand what was decided and how the Court justified its decision. Below is our non-authoritative summary for your convenience:

• All currency (crypto and USD) in Prime Trust accounts is property of the bankruptcy estates.
• The Plan Administrator may liquidate the estate's cryptocurrency portfolio after soliciting bids from at least three exchanges.
• Because assets are being pooled and liquidated, you will receive a pro‑rata payout in U.S. dollars rather than bitcoin.
• Claims will be dollarized at the Petition‑Date conversion rates.
• Distributions will be made by check, ACH, or wire.
• Any single distribution below  $10 will not be issued.
• For handling of taxes and KYC collection, a unique code and instructions will be sent to Prime Trust account holders by email (or first‑class mail if no email is on file), with repeat notices 75 and 140 days later. If the requested information is not submitted by the 151st day after the first request, the holder is forever barred from receiving a distribution.

What you should do now

• Monitor your email and mailbox for the Plan Administrator’s KYC request and respond within 150 days.
• Keep an eye on the court docket for the forthcoming Distribution Notice that will announce the record date.

We recognize this ruling is disappointing, and we share your frustration. Coinbits will continue to bring public attention to the rough treatment our company and its members received in this process.

For factual questions about the procedures above, you may review the public filings Case  23‑11161‑JKS, D.I. 1085 and 1086.

Thank you to everyone who attended yesterday's hearing. We were present and did not hear any discussion directly related to Coinbits or its members' assets.

We continue to await the Court's guidance on the reconciliation of Prime Trust assets and will update you as soon as the next milestone in the case is clear.

This is a friendly reminder that tomorrow, Wednesday May 14th at 1:00 p.m. Eastern time. there will be a hearing in the Prime Trust case that you may attend remotely if you would like to.

Registration instructions:

• Visit https://www.deb.uscourts.gov/ecourt-appearances
• Check the box labeled "I do not have a CM/ECF filing account with Delaware Bankruptcy", unless you do.
• Fill out your personal information.
• The case number is 23-11161-JKS
• Check the box to register for the May 14th hearing and continue.

We will keep you posted with any further developments.

As we continue to wait for the presiding Judge in the Prime Trust bankruptcy case to announce her findings, the Plan Administrator (Province) has requested an additional hearing. As of this writing, the hearing is scheduled to take place on May 14th. Although not directly related to our Objection, the hearing may be of interest to those who are following the case closely. If you would like to attend remotely via video, you must register to do so.

Registration instructions:

• Visit https://www.deb.uscourts.gov/ecourt-appearances
• Check the box labeled "I do not have a CM/ECF filing account with Delaware Bankruptcy", unless you do.
• Fill out your personal information.
• The case number is 23-11161-JKS
• Check the box to register for the May 14th hearing and continue.

We will keep you posted with any further developments.

Thank you to all who attended the hearing last week. The matter of whether to approve the Determination and Distribution Motion of the Plan Administrator is now in the hands of the presiding judge in this case. There is no deadline and no outcome that is able to be anticipated at this time.

We will keep you posted with any further developments.

As you may remember, the Plan Administrator filed a Motion on January 15th that explained how the Administrator intends to reconcile the property of Prime Trust account holders. The Motion contained numerous factually incorrect statements and deviated from the Court-approved plan. The deadline for filing Objections was today, and several were filed.

Coinbits's Objection, filed a few days earlier than the others, systematically exposes fundamental flaws in the Administrator's reasoning through a series of strong, straightforward arguments. Remember, Coinbits's attorneys are not your attorneys. Upon reading our Objection you will appreciate our position that Prime Trust account holders have a right to have the property that they held in trust with Prime Trust to be returned to them. Many subsequently filed Objections echo this argument or make similar arguments.

The next step in the case is the omnibus hearing, where the Administrator's Motion will be presented before the Court. The hearing is still scheduled to take place on February 14th, 2025 at 10:00 AM Eastern Time.

If you plan to attend the hearing remotely or in person, it would be a good idea to mark your calendar now.

Having many people who were affected by the Prime Trust bankruptcy in attendance at this hearing will send a message to the Court that the level of interest in the case is high.  

Registration instructions:

• Visit https://www.deb.uscourts.gov/ecourt-appearances
• Check the box labeled "I do not have a CM/ECF filing account with Delaware Bankruptcy", unless you do.
• Fill out your personal information.
• The case number is 23-11161-JKS
• Check the box to register for the February 14th hearing and continue.

We will keep you posted with any further developments.

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Last night a Motion was filed with the bankruptcy court by the attorneys in charge of winding down the Prime Trust estate. We encourage you to read it here.

We cannot yet share details about how we plan to respond to this filing. Upon reading the document you may notice that it generally lacks detail, makes several statements that are factually incorrect, and conveys an erroneous understanding of cryptocurrency technology. That it took over a year for this document to be produced further undermines its credibility.

The omnibus hearing where this Motion will be presented before the Court is scheduled to take place on February 14th, 2025 at 10:00 AM Eastern Time. Note that the date changed – the new date is FEBRUARY 14TH!

If you plan to attend the hearing remotely or in person, it would be a good idea to mark your calendar now.

Having many of the people who were affected by the Prime Trust bankruptcy in attendance at this hearing will send a message to the Court that the level of interest in the case is high.

Registration instructions:

• Visit https://www.deb.uscourts.gov/ecourt-appearances
• Check the box labeled "I do not have a CM/ECF filing account with Delaware Bankruptcy", unless you do.
• Fill in the case number, which is 23-11161-JKS
• Fill out your personal information.
• Check the box to register for the February 14th hearing and continue.

The omnibus hearing is now scheduled to take place on February 14th, 2025 at 10:00 AM Eastern Time.

If you plan to attend the hearing remotely or in person, it would be a good idea to mark your calendar now.

Having many of the people who were affected by the Prime Trust bankruptcy in attendance at this hearing will send a message to the Court that the level of interest in the case remains high.

Registration instructions have not yet been made available, but we will send an update when they are.

As you know, there was a court hearing scheduled to take place on November 21st, but it was unexpectedly canceled the day before.

We heard from attorneys representing the Prime Trust Wind Down entity that they were hoping to present their plan for reconciling the assets of Prime Trust account holders at the hearing, but the Court told them there would not be enough time at that hearing to hear the motion. The hearing was canceled since there were no other agenda items.

Representatives of the Prime Trust Wind Down entity have been trying to get the Court to give them another hearing date but the Court has not provided one so far.

Moreover, the Prime Trust Wind Down entity has now stated that they will file the reconciliation plan 30 days in advance of the rescheduled hearing date in order to allow parties time to review and respond. This is a substantial change. Prior to the November 21st hearing date, the plan was to be presented for the first time during the court hearing. Now, apparently it will be filed 30 days before any hearing takes place. The reason for the change is unknown.

Due to this 30-day lead time combined with the holiday season, it's likely that the next hearing will take place in January at the earliest.

We will keep you posted with any further developments.

If you registered for the hearing that was scheduled for November 21st, you likely already received an email from the Court notifying you that the hearing will not take place as scheduled. Here's the text of the email we received:

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Due to an adjournment, your appearance before Judge J Kate Stickles, on 11/21/2024 has been withdrawn in the following: No Hearing
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11/21/2024 3:00 PM 23-11161-JKS Prime Core Technologies Inc.

Thank you.

United States Bankruptcy Court
District of Delaware

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We have not yet been able to obtain information about the reason for the adjournment or what to expect next. If we do, we will keep you informed.

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We wanted to highlight an important detail from our last Prime Trust update: You can register now to attend the Court hearing via Zoom, which will take place on this Thursday, November 21st.

Having many of the people who were affected by the Prime Trust bankruptcy in attendance at this hearing will send a message to the Court that the level of interest in the case remains high.

Here's how to register:

Visit https://www.deb.uscourts.gov/ecourt-appearances, scroll down, and click the big blue button labeled "Register for a Remote Hearing".

Next, check the box that says you don't have a CM/ECF filing account with Delaware Bankruptcy (unless you do for some reason), and then click Begin.

Fill out the required fields: First name, last name, address, city, state, ZIP code, phone number, email address, and case number. The case number is 23-11161.

On the next page, the time and date of the hearing will be preselected.

If you are a Prime Trust account holder, you can choose "Case participant."

To observe the proceeding, choose "Video and Audio (Case Participants)".

Click "Save".

On the next page, click "Done".

Then on the page after that, click "Done" again.

An email with the Zoom link will be sent to you prior to the hearing. We do not know the exact date or time this email will arrive – it's up to the Court to send it. Please do not contact the Court to confirm registration.

Registration is required by 4:00 p.m. Eastern Time on Wednesday, November 20th (the day before the hearing).

Last week, the Prime Trust Wind Down entity, which is the organization that possesses the property of Prime Trust account holders, sent notice to the court that they would be filing a motion in the case. Here is the notice. No details were offered as to what that motion might contain. It was an FYI to the judge.

The next hearing is scheduled to take place on November 21st. At this hearing, the Prime Trust Wind Down entity is expected to present a plan for disbursement of assets formerly held by Prime Trust to account holders and creditors. The aforementioned motion would also presumably be discussed.

It is not possible to predict what the motion, or the disbursement plan, will contain before it is presented.

Anyone who is a creditor to Prime Trust and would like to attend the hearing may register to attend via Zoom. Here's the registration link. The case number is 23-11161 (JKS). Registration is required by 4:00 p.m. Eastern Time the business day before the hearing unless otherwise noticed using the eCourtAppearances tool available on the Court’s website.

Remember, the executives who are responsible for the Trust originate with a firm called Province, LLC, whose website can be found at https://provincefirm.com. Should you wish to contact them, you may reach out to David Dunn by phone or by sending an email to ddunn@provincefirm.com. Please note, Coinbits does not specifically advise or request any particular course of action for you.

We will keep you informed of any developments. Thank you for your continued patience and support.

Although there is no substantial update on the Prime Trust matter, we wanted to take a moment to loop you in on our recent interactions with the Trust.

Remember, the deadline for the Trust to determine their course of action for reconciling the assets in their possession is November 1st. We would expect activity in this case to ramp up significantly once the date is closer.

We have obtained a downloadable copy of the transcript from the Clark County Court's docket. You can download your own copy here.

On the first page in the document (marked Page 23), Darren Azman testifies that "obviously our number one goal is to return as much crypto and fiat as possible to creditors including [Coinbits members]."

On the same page, it is stated that two forensic companies were hired to determine what had happened to the assets in Prime Trust's possession. However, the Trust has not offered to share the outcome of that investigation.

In a recent discussion with the Trust, we learned that the Trust is unable to say definitively whether the bitcoin that Prime Trust held on behalf of account holders is accessible to the Trust. The bitcoin of Prime Trust account holders is believed to be held in wallets at a custodian called Fireblocks. Although the Trust would be expected to have access to these wallets and be able to read their balances, the Trust has stated to us that they have not yet done so. The reason is unclear.

The documents filed as a part of the Prime Trust bankruptcy proceedings make no mention of loss of bitcoin. For that reason, we are confused as to why the Trust is unable to confirm the amount of bitcoin in its possession. However, we are continuing to work with the Trust on this matter and have even offered technical assistance to resolve this issue.

Remember, the executives who are responsible for the Trust originate with a firm called Province, LLC, whose website can be found at https://provincefirm.com. Should you wish to consult with them independently, you may contact David Dunn by phone or by sending an email to ddunn@provincefirm.com. Please note, Coinbits does not specifically advise or request any particular course of action for you.

We will keep you informed of any developments. Thank you for your continued patience and support.

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It's been several weeks since our last update, and that is because there has been no progress to report in the case up until now. A few weeks ago, the Trust which is in possession of your bitcoin has posted an update on their website. However, this update was directed to integrators (like Coinbits), not to account holders like you.

In recent days, we have finally been able to make contact with the Trust's legal representation. There are now ongoing conversations discussing the details of Coinbits' relationship with Prime Trust and the end user agreement that each account holder (including us)  entered into with Prime Trust.  The timeline is more fully described in the update hyperlinked above.    

We will keep you informed of any developments. Thank you for your continued patience and support.

We are writing to provide context about an omnibus claims objection that was filed related to the bankruptcy proceedings of Prime Trust. The Wind-Down Trust is tasked with reconciling claims, so there is nothing unusual about this, but we did want to provide some more information to those who have asked for it.

Before we dive in, we want to acknowledge that we have received feedback that our updates about this case can sometimes be hard to understand. We have taken this feedback and tried our best to present this information with both precision and clarity.

A few of you received notice of the filing of an omnibus claim objection because your claim was listed in the objection. If you did receive this notice, it would likely have come in the form of an email from the domain stretto-services.com. You can also find these filings here: https://cases.stretto.com/primetrust/court-docket/

While we cannot offer legal advice, we wanted to share some insights based on our legal team's analysis to help you navigate this situation. Please note that our attorneys represent Coinbits and do not represent our members.

Each Coinbits member is an account holder of Prime Trust. Many account holders, including Coinbits, filed their claims as secured claims to preserve their rights as account holders with property interests in the content of the accounts.

The Trust appears to be acknowledging this account relationship in their objections, which is important because the plan contains provisions for in-kind distribution of assets.

The Trust is also tasked with determining the property rights of account holders and possibly questioning those rights. Our counsel has provided the Trust with a copy of the legacy account agreement that was in place, as well as the Integrator Agreement between Prime Trust and Coinbits. It is our understanding that the Debtors and their professionals have already conducted evaluations of property rights in digital and fiat currency, and that the Wind-Down Trust is waiting to act until their counsel finalizes its review. Coinbits is ready to coordinate with the Wind-Down Trust on distributions of digital and fiat currency.

To the extent that the exclusive property rights of account holders are challenged – and challenged successfully – account holders will be treated as creditors on some portion of their holdings. This introduces ambiguity about as to how claims will be valued and treated under the plan.

As you may have heard, recently a major crypto exchange called Gemini went through a bankruptcy process. Our case is different from the Gemini case in that Gemini was offering interest payments, whereas Prime Trust was a custodian that earned money by charging fees to hold assets. However, the precedent set by the Gemini case, where creditors received full restitution through in-kind distribution of cryptocurrency assets, offers a potentially positive outlook for similar outcomes in bankruptcy cases involving in-kind transfers.

The executives leading the Wind-Down Trust originate with a firm called Province, LLC, whose website can be found at https://provincefirm.com. This team is instrumental in this phase of the case. Should you wish to consult with them independently, you may contact David Dunn by phone or by sending an email to ddunn@provincefirm.com.

This information is provided to assist those who might be considering independent legal recourse to safeguard their property interests, including the potential for future objections, filing a reservation of rights with the Court, and/or otherwise communicating with the executives at Province.

Please note, Coinbits does not specifically advise or request any particular course of action for you. The material shared here is purely informational, aimed at addressing inquiries we received following the notice that was sent to some of you regarding changes to your claim's status.

Should you have further questions or require assistance, we encourage you to consult with a legal professional to explore your options and rights within this process.

Today, we posted the below as a tweet thread on X:

With all the excitement around bitcoin's rise, we are getting more questions about the status of the #bitcoin still locked up with Prime Trust. Here's some background on Prime Trust for those who may not know and an update on where we stand today.

The story of their rise and fall is long, but the short version is that Prime Trust acted irresponsibly, their regulator didn't notice until too late, and many people holding assets with them (not just Coinbits) got caught up.

Prime Trust went bankrupt and has been dissolved, but there is a new entity that is now in possession of the assets formerly held by Prime Trust. This entity is called Prime Trust Wind Down. We are continuously in touch with the Prime Trust Wind Down team. What we understand is this:

When Prime Trust lost insane amounts of money that led to their demise, our members' bitcoin was not affected. The Prime Trust Wind Down entity possesses the assets formerly in Prime Trust's custody and intends to reconcile our members' bitcoin. However, the Prime Trust Wind Down entity is following a slow process that has not yet been resolved. We are laser-focused on this but have limited influence over the process.

The Prime Trust Wind Down entity maintains a blog that posts updates on the process. As of January 5th, 2024, there has been only one update, which was to announce the entity's existence. https://primetrustwinddown.com/updates/

We can't say much about our strategies to move this process forward, but we are not standing pat.

We have rebuilt Coinbits to be more resilient and make self custody easier than ever. The experience with Prime Trust led us to rethink our product and rebuild it to incorporate a flexible account model that lets us remain agile and responsive to changes in customer needs and the banking service tools we use.

The Coinbits architecture will let us offer various custody accounts and wallet experiences, giving you redundancy and more choices. We will continue to innovate to deliver the lowest friction and best UX possible for self custody.

Bitcoin is much bigger than all this, and when this episode is in the rearview mirror, we will all be relieved. In the meantime, hang tight, and let's hope for progress soon.

The Prime Trust Wind Down entity has published a website where they will be posting updates. Here is the link:

https://primetrustwinddown.com/

The Debtors’ Liquidation Plan approved on December 19th has now gone effective.

The Liquidation Trust formed under the Plan has been ramping up operations over the past week and is in the process of engaging counsel. We have been in preliminary conversations with the team running the liquidation.

We have prepared materials to share with the team and hope to have more information to share in the near future once they have completed their initial analysis. At this time we have no way to predict how long this will take. However, we are in regular contact with the liquidating entity team. We expect to have more information in the coming few weeks.

On December 19th, the Court ruled that the liquidating plan for Prime Trust will be approved and a creditors’ trust will replace the Debtors in commencing litigation against parties and disbursing assets under its control. We are waiting for an order confirming the Debtors’ plan.

This new liquidating entity intends to conduct a review of account holder and integration agreements. Coinbits has played an active role in this case and is prepared and ready to submit information on behalf of our users (and ourselves) to the professionals in charge of liquidation.  

After the review is complete, logistics will be determined for transferring property to its owners, as appropriate. We expect to have more specifics about this process to communicate to you in early January after the entity goes into place and we can submit the information for review.

It’s been a few weeks since our last update. There isn't much progress that we can report. The next significant step in the bankruptcy case is the upcoming Confirmation Hearing taking place on December 19th. There are a number of matters up for hearing on that day.

Multiple objections to the Plan of Reorganization have been filed which seek clarification as to the ownership of assets. These objections, together with our objection, will be heard on the 19th.

We hope to have more soon.

It’s been a few weeks since our last update and we wanted to post a new one to keep in touch.

There is not much new to report. No developments regarding a sale (the auction has been delayed five times so far) and the plan confirmation date and related deadlines have been extended.

The Confirmation Objection Deadline and the Voting Deadline have been extended to December 5, 2023, at 4:00 p.m. (ET) and the new Confirmation Hearing date is December 19, 2023, at 10:00 a.m. (ET).

Some of you have asked how we are voting on the Plan of Reorganization. We intend to vote against the Plan and opt out of the third party releases

We hope there is more to report soon.

We recently received a "Disclosure Statement and Plan" document and were presented with the decision to either accept or object to its contents. There are three potential responses we can offer: vote in favor, vote against, or abstain from voting altogether.

After careful consideration and having thoroughly reviewed the plan, we believe that it does not adequately address our concerns. As such, we have chosen to vote against it.

Additionally, we have opted out of the releases specified within the plan and any associated third-party releases.

We share this decision with you for transparency and to ensure you're kept informed. However, we strongly recommend seeking guidance from both your personal judgment and legal counsel when determining your own voting decision.

Please be assured that we are actively monitoring the bankruptcy case and are being kept up-to-date through our legal representation involved in the proceedings.

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There has been a development in the Prime Trust bankruptcy case. Nothing in this post should be construed as legal advice; we are explaining our understanding of events, and what we plan to do next, in order to keep you informed.

In recent days, the court has established a final deadline for filing "Proof of Claim" forms. You may receive a communication in the mail inviting you to file a Proof of Claim for some amount of assets that are held by Prime Trust. Whether or not you receive such a communication, you may submit a Proof of Claim.

You can use this website to file a claim electronically. Our understanding is that Proofs of Claim are due October 22nd, 2023.

What is a Proof of Claim?
A Proof of Claim is a way to express a property interest. Everyone who believes they have a claim to assets still held by Prime Trust is invited to submit one.

Why would someone file a Proof of Claim?
Filing a Proof of Claim is a way to proactively assert your rights to your property. If you submit a Proof of Claim, you will have the opportunity to say how much bitcoin you own, and to declare that you are asserting your right of ownership of it. If you do not submit one, you may or may not waive your rights to your property; this remains to be determined during the course of the bankruptcy proceedings.

Why would someone decide not to file a Proof of Claim?
In the bankruptcy case, owners of assets at Prime Trust are currently anonymous. If you submit a Proof of Claim, you may de-anonymize yourself.

Is Coinbits filing a Proof of Claim?
Coinbits will file a Proof of Claim to the assets that we own as a business. However, we cannot file a Proof of Claim on behalf of our members. If you decide that you want to submit a Proof of Claim, you must take action yourself.

When are Proof of Claim forms due?
Our understanding is that they are due October 22nd, 2023.

What does the content a Proof of Claim typically include?
Coinbits intends to reserve its property rights by filing its claim against bitcoin as "secured," based upon bitcoin being held in trust by Prime Trust. For Coinbits members, the written content in a Proof of Claim might include what they believe they own, that they reserve rights of ownership of it, and that they reserve the right to have the claim paid in bitcoin, if that's desired.

Detailed Proof of Claim instructions are available here. You can use this website to file a claim electronically.

A creditors' committed has been formed and is in the process of obtaining legal representation. 

The final hearing on the first day motions is expected to occur on September 19th, 2023.

There is no new information about how assets that were held in trust will be disbursed to Prime Trust's account holders.

If you would like to follow the Prime Trust bankruptcy case, you can find documents and other information related to it here.

A press release has been issued that confirms Prime Trust has filed for voluntary Chapter 11 restructuring. You can review the press release here.

This is a follow-up to last week’s news that the Receiver appointed to oversee Prime Trust asked permission from the State Court to begin Chapter 11 bankruptcy proceedings. 

During yesterday's hearing, the Judge heard evidence and said she would grant the motion permitting the Receiver to create the Special Committee and finalized the Receiver’s control over the estate in contemplation of a chapter 11 filing in the near future.  

The Receiver argued that getting trust assets back into the hands of account holders is still the goal and will best be achieved in bankruptcy court.

Prime Trust, once in bankruptcy, will be hiring a forensic IT firm to analyze the wallets. That still has not been done as of yet. 

Thank you for your continued support and patience.

Last night we learned that the Receiver appointed to oversee Prime Trust has determined that filing a bankruptcy under Chapter 11 will be the best forum to coordinate a restructuring or liquidation of Prime Trust.

In order to prevent Prime Trust management from taking back control of the company, the Receiver has asked permission from the State Court to form a Special Restructuring Committee (which includes the Receiver) to direct the Chapter 11 proceedings. This committee will include John Wilcox and Michael Wyse.

To our knowledge, this does not directly affect whether or how funds are eventually disbursed to our members. Our attorneys are in contact with the legal representation of the Receiver and we will keep you apprised of any updates.

We greatly appreciate your continued support and patience during this time.

This week, Coinbits is working with our attorneys to open a communication channel with the legal representation of the Receiver who has been appointed to oversee disbursements.

The following message was shared with Coinbits members:

Dear Coinbits Community,

We thank you for your patience as we learn more about the Prime Trust receivership. We’ve learned today that a Receiver was appointed, but we are awaiting confirmation from our legal counsel and notice from Prime Trust.

To see the Receivership update, search case number "A-23-872963-B" in the portal here.

We will follow up this week once we get confirmation on the Receiver, who will be our point of contact to understand next steps.

In the meantime, rest assured that we are on top of this and will keep you updated on any progress we are informed about.

Coinbits is committed to building a lasting bitcoin on-ramp and education platform. Our team has doubled down on our vision and commitment to our customers. We are rebuilding our infrastructure with a focus on self-custody and redundancy.

Sincerely,
The Coinbits Team

Since our last update, there is no new information to report. The next step is still for a Receiver to be appointed to oversee the disbursement of assets held with Prime Trust. We'll continue to post incremental updates on this page. If anything substantial happens, we will also send an email to make sure you stay informed.

On June 30th, we received the following email from Prime Trust.

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Date: Fri, Jun 30, 2023 at 12:01 PM
Subject: Update on Regulatory Process

Dear Valued Clients and Partners,

Thank you for your continued patience as Prime Trust works with the Nevada Financial Institution Division. We intend to send out more regular updates as new information becomes available subject to the direction of the receiver (when appointed). Below is the latest status:
• Prime Trust is still subject to the Cease and Desist order and is complying with that order. As a result, all deposits and withdrawals of fiat and digital assets for custody continue to be halted.
• Nevada financial regulators have filed a petition for appointment of receiver, temporary injunction, and permanent relief of receivership with the Eighth Judicial District Court of the State of Nevada. While the petition is pending, we do not have further information.
• Once a receiver is assigned, we hope to be able to provide more in-depth updates on next steps. In the meantime, we have paused billing notifications until the receiver can provide further guidance.

Sincerely,
Prime Trust, LLC

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Today we published a tweet thread with a summary of what we currently know.

Last week we let you know that we would be keeping you in the loop with any developments and new information about our work to resume normal operations. 

As for what is happening with Prime Trust and the funds our members kept in their custody – we are still in the early stages of getting additional information.

Prime Trust has not communicated since the halt occurred. However, earlier today, a document was posted to the website of the Nevada Department of Business & Industry, the agency that regulates Prime Trust, that includes information about the events that led to regulatory action. The document can be found here.

We contacted the Nevada Department of Business & Industry to try to learn more. We will continue to follow this lead in the coming days.

Thank you again for your understanding. The notes of support we received from some of you have been very encouraging to read.

Any time new information surfaces, we will post it on this blog.

We wanted to follow up with you about the suspension of services on our platform. We understand this is a difficult situation and we thank you for your patience as we work to restore our services.

We are working to obtain updates from Prime Trust, but have no new information at this time. Regulators have stepped in to protect consumers. We are contacting the regulators directly and will provide you with an update next week.

The community has been growing by leaps and bounds, and we will come out stronger on the other side.

Dear Coinbits Community,

We want to keep you informed about a significant unexpected development. As directed by the Nevada Financial Institution Division, one of our infrastructure providers, Prime Trust, has unfortunately suspended all deposits and withdrawals of fiat and digital assets.

To maintain the security of your assets and the integrity of our platform, we have proactively paused most of Coinbits's features. We are deeply sorry for any inconvenience caused by this situation. Your safety and security are our utmost concern, and we are working tirelessly to resolve this situation swiftly.

In recent months, we initiated discussions with additional partners that would allow us to restore service. This process is our top priority. Some of our long-term members may recall that a similar situation occurred in 2020, and we thank you for staying with us through that time.

We’ve been diligently improving our infrastructure to prepare for this transition. This effort is our main focus, as we recognize the importance of maintaining continuity for our community. In addition to restoring our regular services, this transition will result in new exciting features for you.

Trust is the core of any relationship, and we want to alleviate any concerns you may have about our financial resilience. You can be confident that Coinbits has sufficient funding and resources to resume operations soon.

We sincerely appreciate your patience. We promise to keep you updated as events progress. Together, we will navigate this difficult period and come out stronger than ever.