Prime Trust's litigation trust hit Swan Bitcoin with a 94-page lawsuit on May 15, seeking to claw back $970 million in assets it says were pulled out before the crypto custodian collapsed. The complaint, filed in what the trust calls a last-ditch recovery effort, targets transfers it claims were made when Prime Trust was already in deep trouble.
The allegations
The suit argues Swan Bitcoin knew Prime Trust was teetering but still withdrew hundreds of millions in assets. It doesn't name individual executives, but the sheer size of the claim — nearly a billion dollars — suggests the trust believes a bulk of Prime Trust's missing funds ended up with Swan. The filing is packed with transaction records and internal communications, the trust's lawyers said in a statement.
Prime Trust's messy end
Prime Trust was once a go-to custodian for crypto firms. When it cratered, clients were locked out of wallets, and a litigation trust was set up to chase down money it argued was improperly moved out. This Swan suit is one of the biggest single claims to come out of that wreckage. The timing isn't great for Swan, which has been expanding its bitcoin-focused services this year.
Court documents show the case was filed in a Nevada court, where Prime Trust was based. Swan Bitcoin hasn't filed a response yet. The trust is asking for a jury trial and a full accounting of the withdrawals. With $970 million on the line, this one's going to draw a lot of attention as discovery gets underway.
