Prime Trust: Former leadership's reckless spending and mismanagement of asset storage wallet led the company into a crisis.

BlockBeats News, on August 28th, Jor Law, CEO of the cryptocurrency custody firm Prime Trust, explained in a filing submitted to the US bankruptcy court in Delaware last Thursday the reasons for Prime Trust's difficulties. He stated that the former leaders of the company blindly increased company expenses during a period of low income, resulting in Prime Trust losing $7 million and $8.4 million in October and November last year, respectively. In addition, the court documents stated that the company opened the "98f wallet" for holding tokens in March 2018, and later transferred its wallet to a system operated by the digital security platform Fireblocks. However, the company did not realize that the migration from the old wallet to the new system was incomplete, and did not realize that it was still providing customers with addresses that allowed them to deposit funds into the "98f wallet." These errors were only discovered when a customer requested a large ETH withdrawal that the company could not fulfill. Law stated that Prime Trust still cannot access the 98f wallet today. He also stated that "certain company employees" began purchasing ETH with fiat currency from customer accounts and fulfilled withdrawal requests between December 2021 and March 2022, using more than $76 million in funds. (Decrypt)