Bitcoin 10 mins
Some modest selling has crept into bitcoin, bringing the price back below $30,000 after BitGo revealed that it terminated a merger deal with rival custody firm Prime Trust.
After considerable effort and work to find a path forward with Prime Trust, BitGo has made the hard decision to terminate its acquisition of Prime Trust. This decision was not made lightly and BitGo remains committed to our mission to deliver trust in digital assets.
The deal was announced two weeks ago with a letter of intent.
CoinDesk reports that Prime Trust has been losing clients and deposits to competitors for weeks amid mounting concerns over its business, citing a source.
Any time a deal falls apart, there are always worries that some kind of malfeasance or hole in the balance sheet will be uncovered. Prime is related to the TrueUSD (TUSD) stablecoin and there was talk of failed redemptions. Prime Trust subsidiary Banq also filed for bankruptcy earlier this month.
Bitcoin has rallied 10% this week on excitement about a possible ETF from Blackrock.