Swan Bitcoin Accused of Withdrawing $938M From Prime Trust Before 2023 Collapse

According to a Delaware bankruptcy court filing, Swan Bitcoin is facing legal action over claims it withdrew approximately $938 million in digital assets from Prime Trust before the crypto custodian collapsed in 2023. The PCT Litigation Trust alleges Swan had access to confidential information about Prime Trust's financial troubles and used that knowledge to remove funds before the company entered Chapter 11 bankruptcy.

The assets identified include approximately 11,994 BTC valued at around $938 million, $24.66 million in cash, roughly $5 million in stablecoins, and 91,144 XRP worth about $129,484. Prime Trust was shut down by Nevada regulators in June 2023 before filing for bankruptcy two months later.