Prime Trust subsidiary Banq files for bankruptcy amid BitGo acquisition deal

The move comes just days after wallet infrastructure supplier and digital possession custodian BitGo signed a non-binding letter of intent to obtain Prime Trust, which was announced on June 8. Fortress NFT Group was set up by Banqs previous CEO, CTO and CPO, reports state, and Banq is presently in arbitration with Fortress NFT Group over these allegations.The timing of the filing, just after the BitGo acquisition offer of Banqs parent Prime Trust was revealed, raises questions about how it might affect the agreement.While the terms of the deal were not revealed, if it goes through, BitGo will acquire Prime Trusts payment rails and cryptocurrency IRA fund and increase its wealth management offerings.Prime Trusts Nevada Trust Company will likewise join BitGos network of regulated trust business in South Dakota, New York, Germany, and Switzerland.” The crypto custody market is progressing quickly, with recent offers consisting of Ripples acquisition of Swiss digital possession custody service provider Metaco in May for $250 million.The BitGo/Prime Trust offer, if it goes ahead, comes just as the United States Securities and Exchange Commission has proposed guideline modifications that would make it harder for crypto companies to act as custodians of their clients funds.Related: Prometheum subsidiary gets FINRA approval for digital asset certified custodyPrime Trust has been under pressure for a while, having actually reportedly laid off a 3rd of its personnel in January.