$1 Billion Lawsuit Filed Against Swan Bitcoin

The bankruptcy estate of Prime Trust has sued Swan Bitcoin. The lawsuit alleges that the crypto services company used insider information to withdraw nearly $1 billion in assets shortly before Prime Trust's collapse. This was reported by Cointelegraph.com reports.

According to documents filed with the Delaware Bankruptcy Court, Swan misappropriated $24.6 million in cash, 11,994 Bitcoin (BTC), and 5 million USDT. The current market value of these Bitcoins is approximately $923 million.

During the proceedings, it was revealed that a high-ranking Prime Trust official acted as a secret advisor to Swan. Before the company's collapse, they communicated with Swan CEO Cory Klippsten via encrypted messages, providing instructions to withdraw assets immediately.

The lawsuit claims that Swan Bitcoin saved its own funds while knowing other clients would suffer losses. Furthermore, Prime Trust employees were allegedly forced to create fake accounting records to make it appear as if Swan's funds were held in a separate trust.

Currently, Prime Trust's liquidation commission is conducting a large-scale investigation to recover all assets illegally withdrawn before the bankruptcy. Swan Bitcoin representatives have not yet provided an official comment regarding these allegations.