Swan Bitcoin faces $970M lawsuit over Prime Trust collapse

cryptonews05-19 15:11

Swan Bitcoin is facing a nearly $1 billion lawsuit tied to the 2023 collapse of crypto custodian Prime Trust. Summary PCT Litigation Trust seeks $970 million from Swan Bitcoin over transfers ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSwan Bitcoin faces $970M lawsuit over Prime Trust collapse\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-05-19 15:11 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://crypto.news/swan-bitcoin-faces-970m-lawsuit-over-prime-trust-collapse/><strong>cryptonews</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Swan Bitcoin is facing a nearly $1 billion lawsuit tied to the 2023 collapse of crypto custodian Prime Trust.\n\n\nSummary\n\n\n\nPCT Litigation Trust seeks $970 million from Swan Bitcoin over transfers ...</p>\n\n<a href=\"https://crypto.news/swan-bitcoin-faces-970m-lawsuit-over-prime-trust-collapse/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BTCC","symbol_name":"Grayscale Bitcoin Covered Call ETF","start_time":0,"source_url":"https://crypto.news/swan-bitcoin-faces-970m-lawsuit-over-prime-trust-collapse/","article_id":"2636838746","we_media_id":null,"thumbnails":[],"rights":{"source":"crypto_news_highlight","url":"https://crypto.news/swan-bitcoin-faces-970m-lawsuit-over-prime-trust-collapse/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2636838746","pubTimestamp":1779174673,"columns":[],"sourceInfo":{"source_id":"crypto_news_highlight","name":"Crypto News"},"weMediaInfo":null,"summary":"Swan Bitcoin is facing a nearly $1 billion lawsuit tied to the 2023 collapse of crypto custodian Prime Trust.PCT Litigation Trust seeks $970 million from Swan Bitcoin over transfers before Prime Trust bankruptcy.The complaint says Swan moved 11,994 BTC plus cash, stablecoins, and XRP before bankruptcy filing.Swan disputes the claims, saying customer assets held in trust cannot repay general unsecured creditors.PCT Litigation Trust has filed a lawsuit against Electric Solidus, Inc., the company operating as Swan Bitcoin, in the U.S. Bankruptcy Court for the District of Delaware. The complaint seeks to recover crypto and cash that the trust says moved out of Prime Trust before its bankruptcy filing.The claim centers on about 11,994 Bitcoin, $24.66 million in cash, roughly $5 million in stablecoins, and 91,144 XRP. Blockspace, which linked to the court filing, reported that the trust is seeking more than $970 million based on current Bitcoin prices.Prime Trust’s collapse began in 2023 aft","collect":0,"end_time":0,"defaultTopTitle":"crypto.news","property":[],"viewcount":null,"language":"en","relate_stocks":{"83042":"华夏比特币-R","BTCC":"Grayscale Bitcoin Covered Call ETF","CBXA":"Calamos Bitcoin 90 Series Structured Alt Protection ETF – April","BK4594":"比特币ETF概念","BRRR":"比特币ETF-CoinShares","BK4601":"加密货币现货ETF","BAGY":"Amplify Bitcoin Max Income Covered Call ETF","CBXJ":"Calamos Bitcoin 90 Series Structured Alt Protection ETF - January","QBF":"Innovator Uncapped Bitcoin 20 Floor ETF - Quarterly","BITO":"比特币期货ETF-ProShares","BPI":"Grayscale Bitcoin Premium Income ETF","DIME":"CoinShares Altcoins ETF","BFJL":"FT Vest Bitcoin Strategy Floor15 ETF - July","SBIT":"2倍做空比特币期货ETF-Proshares","BITQ":"Bitwise Crypto Industry Innovators ETF","LFGY":"YieldMax Crypto Industry and Tech Portfolio Option Income ETF","TEKX":"SPDR Galaxy Transformative Tech Accelerators ETF","CBOY":"Calamos Bitcoin Structured Alt Protection ETF - July","BTCO":"比特币ETF-Invesco Galaxy","CBXO":"Calamos Bitcoin 90 Series Structured Alt Protection ETF - October","EZBC":"比特币ETF-Franklin","FBTC":"比特币ETF-Fidelity","XBTY":"GraniteShares YieldBOOST Bitcoin ETF","IBIT":"比特币ETF-iShares","ARKB":"比特币ETF-21Shares","CBXY":"Calamos Bitcoin 90 Series Structured Alt Protection ETF - July","BTRN":"比特币期货ETF-Global X","BITU":"2倍做多比特币期货ETF-Proshares","BKCH":"AdvisorShares Sabretooth ETF","BTCW":"比特币ETF-Wisdom Tree","BK4585":"ETF&股票定投概念","BK1611":"加密货币现货ETF","BITW":"Bitwise 10 Crypto Index ETF","CBTA":"Calamos Bitcoin 80 Series Structured Alt Protection ETF – April","STCE":"Schwab Crypto Thematic ETF","DFII":"FT Cboe Vest Bitcoin Strategy & Target Income ETF","BITX":"2倍比特币期货ETF-Volatility Shares","CBOA":"Calamos Bitcoin Structured Alt Protection ETF - April","BFAP":"FT Vest Bitcoin Strategy Floor15 ETF - April","DEFI":"比特币期货ETF-Hashdex","CBOJ":"Calamos Bitcoin Structured Alt Protection ETF - January","BITY":"Amplify Bitcoin 2% Monthly Option Income ETF","DAPP":"VanEck Digital Transformation ETF","BITB":"比特币ETF-Bitwise","GBTC":"比特币ETF-Grayscale","CBTO":"Calamos Bitcoin 80 Series Structured Alt Protection ETF - October","HODL":"比特币ETF-VanEck","BCCC":"Global X Bitcoin Covered Call ETF","BTC":"Grayscale Bitcoin Mini Trust","GDLC":"Grayscale CoinDesk Crypto 5 ETF","BITI":"1倍做空比特币期货ETF-Proshares","CBTY":"Calamos Bitcoin 80 Series Structured Alt Protection ETF - July","BK4588":"碎股","CBOO":"Calamos Bitcoin Structured Alt Protection ETF - October"},"translate_title":"天鹅比特币因Prime Trust倒闭面临9.7亿美元诉讼","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"83042":0.6,"SBIT":0.6,"DFII":0.6,"BKCH":0.65,"STCE":0.87,"BTRN":0.6,"EZBC":0.6,"BTC":1.64,"BITX":0.6,"BAGY":0.6,"CBXY":0.6,"GDLC":0.65,"QBF":0.6,"BITO":0.6,"BTCW":0.6,"DEFI":0.6,"CBOJ":0.6,"CBOO":0.6,"BITY":0.6,"BITU":0.6,"BFJL":0.6,"BITI":0.6,"ARKB":0.6,"HODL":0.6,"BTCC":0.6,"DAPP":0.65,"BPI":0.6,"BITQ":0.65,"CBTY":0.6,"BTCO":0.6,"LFGY":0.65,"FBTC":0.6,"TEKX":0.65,"CBOA":0.6,"CBTO":0.6,"XBTY":0.6,"BFAP":0.6,"DIME":0.65,"BITW":0.87,"CBTA":0.6,"CBXA":0.6,"CBOY":0.6,"CBXJ":0.6,"CBXO":0.6,"BITB":0.6,"BRRR":0.6,"GBTC":0.6,"BCCC":0.6,"IBIT":1.54},"content_text":"Swan Bitcoin is facing a nearly $1 billion lawsuit tied to the 2023 collapse of crypto custodian Prime Trust.\n\n\nSummary\n\n\n\nPCT Litigation Trust seeks $970 million from Swan Bitcoin over transfers before Prime Trust bankruptcy.\nThe complaint says Swan moved 11,994 BTC plus cash, stablecoins, and XRP before bankruptcy filing.\nSwan disputes the claims, saying customer assets held in trust cannot repay general unsecured creditors.\n\n\n\nPCT Litigation Trust has filed a lawsuit against Electric Solidus, Inc., the company operating as Swan Bitcoin, in the U.S. Bankruptcy Court for the District of Delaware. The complaint seeks to recover crypto and cash that the trust says moved out of Prime Trust before its bankruptcy filing. \nA Stretto court filing tied to Prime Core Technologies says the complaint alleges Swan moved fiat and crypto from Prime shortly before bankruptcy.\nThe claim centers on about 11,994 Bitcoin, $24.66 million in cash, roughly $5 million in stablecoins, and 91,144 XRP. Blockspace, which linked to the court filing, reported that the trust is seeking more than $970 million based on current Bitcoin prices.\nPrime Trust bankruptcy claim centers on insider information\nThe complaint claims Swan used non-public information to avoid losses before Prime Trust failed. It says a senior Prime Trust executive, who also served as a paid outside adviser to Swan, contacted Swan CEO Cory Klippsten before key meetings with Nevada regulators.\nThe suit claims Swan asked to move its entire business away from Prime Trust on May 25, 2023, one day before Prime met with the Nevada Financial Institutions Division. The complaint says the timing helped Swan avoid losses that other Prime customers later faced.\nThe filing says, “Swan knew to transfer fiat and crypto from Prime immediately prior to Prime filing for bankruptcy to avoid catastrophic losses.” Swan has not filed a court response to the new complaint, based on available public reporting.\nSwan Bitcoin disputes Prime Trust estate claims\nSwan has denied the core argument through a representative statement. The company said, “Prime Trust held customer property in individually-owned trust accounts.”\nThe representative also said, “Customer assets held by a trust company are not available to general unsecured creditors, and we expect the courts to say so.” That defense frames the dispute around whether the assets belonged to Swan, Swan customers, or the Prime Trust bankruptcy estate.\nThe trust argues the assets should return to the estate for creditors. Swan’s position is that the estate is trying to take assets held in trust as customer property. The court will now need to examine the custody agreements, transfer timing, and the alleged access to inside information.\nPrime Trust collapse remains a crypto custody case\nPrime Trust’s collapse began in 2023 after Nevada regulators said the custodian was insolvent and could not meet customer withdrawal requests. Earlier reports noted that regulators placed Prime Trust into receivership after finding its financial position unstable.\nPreviously, crypto.news reported that Prime Trust later filed for Chapter 11 bankruptcy after Nevada regulators found the company insolvent. That report also said Prime Trust had used customer money to pay withdrawals since December 2021 and owed customers about $82 million in missing deposits and fiat currency.\nThe new Swan Bitcoin case adds another court fight to the Prime Trust fallout. It also keeps attention on crypto custody controls, trust account treatment, and how courts handle customer assets after a custodian fails.\nSeparate crypto.news coverage has also followed Swan Bitcoin’s other legal disputes, including its request to subpoena Cantor Fitzgerald and Howard Lutnick in a Bitcoin mining fight tied to Tether and former staff.\n\n\n\n\n\n                Read more:\n            \n\n                Echo Protocol pauses bridge after attacker mints $76M eBTC","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.42.2","shortVersion":"4.42.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2636838746","isCrawlerRequest":true}