Swan Bitcoin Faces Lawsuit Over $1 Billion Crypto Linked to Prime Trust Collapse

PCT Litigation Trust has filed a lawsuit against Swan Bitcoin in the Delaware Bankruptcy Court, seeking to recover nearly $1 billion in cryptocurrency associated with the collapse of Prime Trust in 2023. According to NS3.AI, the lawsuit claims that Swan Bitcoin utilized insider, non-public information to transfer its business and assets away from Prime Trust before the custodian ceased operations and subsequently filed for Chapter 11 bankruptcy. The legal action aims to reclaim nearly 12,000 BTC, approximately $22.4 million in USD, $5 million in stablecoins, and 91,444 XRP. A representative from Swan Bitcoin stated that the contested assets were customer property held in trust accounts and were not accessible to general unsecured creditors.