Why Prime Trust’s bankruptcy estate is suing crypto companies

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“This estate is basically saying prime trust was so poorly run that the assets that were supposed to have been clearly demarcated per client were hopelessly co-mingled.” The Prime Trust Litigation Trust is suing bitcoin companies to clawback funds that it claims were withdrawn during a preference period before the company went bankrupt. River CEO Alex Leishman explains how proof of reserves could have helped in this situation, especially considering companies may have believed they had legal protections in place which are now subject to the ruling of the bankruptcy court. “If Prime Trust had proof of reserves, none of this would have happened. You should never have your money anywhere where they don't have a transparent operation.” “Prime Trust may or may not have had the right legal agreements and structure in place. But unfortunately, the Prime Trust operations were just pulling everything together and running a seemingly fractional reserve.” 🎧Catch the latest episode of 'The Blockspace Pod,’ in partnership with @blockspace Media! 🎧 Spotify: https://open.spotify.com/show/2jyIhkvAQhed8AWDZiPpSP 🎧 Apple: https://podcasts.apple.com/us/podcast/coindesk-podcast-network/id1414384043 📺 Watch: https://www.youtube.com/channel/UCZBo-pYEI9lyjxoojq_X8MA?sub_confirmation=1