This is absolutely a planned exit bud, never should we believe all these lies that they tell us, a criminal will always have an excuse and when coming up with such excuse, they will look for one that seems very true and appealing and believable.
I personally believe that nobody in their right senses will lose a private key or seed phrase to a wallet containing such an amount of money, 38.9 million dollars is not child's Play, they have probably planned it all and are ready to Battle/defend this claim whether it takes them years, at the end of it all, when everyone has forgotten, they will quietly withdraw this money and start enjoying themselves meanwhile those that have lost have lost...
Not your keys, not your crypto , those who have refused to listen and believe in this the soft way, will have to learn to believe it in the hard way.
I think that these corporations have got the idea of what they're doing from the first ones that have probably done the same thing. And they're not just a few but several companies that hides their main purpose and tries to stir things up through making it like they're a dumb company that have lost the password for their corporate wallet.
So weird to see that some people are still interested in using this services for nothing than to later regret about their decision with them, mamy we should assume it's a mistake common to newbies or even most user's experience in tgis know about the risk but can't help thwn to deliberately risk their asset with thm, when it's not your keys the coins does not belong to you, this is ot a joke but the fact of the matter, i believe with this same experience, eome have learnt their own in the hard way.
Well, it's not going to change for a long time not until everyone has been a victim of these services and lost the funds that they've worked hard for. The trust that one's commit is because they're registered and covered by government laws. But these people don't know that when situation like this escalates, there's no way the government can help them get those refunds if all has been wiped. Everyone will learn the lesson the harsh way even if we don't want to.
This is obviously a hoax. Anyone storing 40 million dollars worth of assets will take at least the precaution of having a backup, if it's a company they will have several backups held by different members of the board or put it in a multi sig wallet so no singular member of the board can sign a transaction without the other.
They will probable wait a while and then claim another party has possibly gained access to the wallet, and then liquidate all the funds on it through mixers and the court will not be able to act cause they do not have any proof of the scam.
That's sad. It's really possible that they can get away, give some excuse that they have really forgotten the wallet to make people gullible that they really do. For sure that there's gonna be orgs or individuals that will monitor the wallet that have been said that they've lost. So, no surprises if it gets accessed by anyone and soon may be told as "hacked" wallet and funds to reason again.
It's Ironic that a company that is supposed to provide custody for the cryptocurrency has actually lost the seed/ recovery seeds so now all those funds are stuck?
I don't know how many lessons are needed for investors to remember the significance of self-custody of their crypto assets to mitigate this kind of situation. As far as I can read it's about 40 Million dollars worth of assets it's huge so hopefully people will take this into consideration next time if they opt for custodial service.
One more reason to say Not Your Keys, Not Your Coins.
As much as we don't want investors to experience something like this, it's like this event is inevitable as there will be more newbies that will come to the market prior to the bull run halving. And the sad thing is that they're going to trust more of these custodial services than to listen to the people that tells them to hold their own crypto.
From the
https://decrypt.co/152508/prime-trust-chapter-11-bankruptcy link:
Regulatory filing reported that Prime Trust owed over $82 million to customers from missing fiat currency deposits, despite having $68 million in digital assets under custody. But an analysis showed most of those funds were held in an illiquid token rather than Bitcoin.
So they lost the keys AND bought a ton of some shitcoin / token.
Since they are / were a Nevada company might as well as gone to Las Vegas and bet it all in a video slot machine. This was you can see all the blinking things on the screen as your money disappears.
And their website is still up and running without a mention of what is going on.
Another day, another bunch of people who can't figure out the magical internet money machine is a myth.
-Dave
That's probably right that funds could have been gone and gambled, and this is possible due to what happened to FTX fiasco and Bankman's spending. As for the shit coin:
Prime Trust Lost $8M in Doomed Terra Stablecoin Investment, CEO Says and there could be more.
This seems to be so unbleivable that one like me will definitely say this is just an exit plan because if it's a fintech company, then how did they come to lose the keys to funds, and first of all, why are they keeping all the funds in a single address? To be honest, I feel sad for the ones who lost their funds, but AFAIK, if they would hire someone good at investigation, then the chances are that they might get access to the key. Of course, the recovery operation depends on which device (HW, software wallet) they are using: did they create the recovery key using offline systems or online? Did they create the key using some specific cypher with some key? Then they might regenerate the key.
I mean, if they are managing the funds of others, then they at least should create the key from some generators with their own encryption key to enhance the security, and if they do it, then they must use the same key to regenerate the key.
We're all feeling bad and sympathy is always with the victims and not with these greedy corporations that have been using their customer's money as their ladder for their own personal gains and sakes. I am pretty sure that there could be people interested on this case and won't be dumb to believe their potential fake story.
And I do not know how this is directly related to Bitcoin, which you made a topic of this discussion.
Maybe on Service Discussion?
Well, it's also very easy to claim the keys or seed was lost/misplaced.
I won't say the loss is for real or not, it's also hard to prove anything. The only proof could be if one of those owners (or a random employee maybe!) suddenly disappears (goes under the radar for a great retirement).
You know, one would expect for a fintech company they'd use multisig wallet, to make not only safer, but also more fair if there are more owners, but meh...
I guess it's gonna be long until we will finally hear the real story behind this but, it would be amazing and good to hear someone inside that can't take what's happening and will speak the truth behind this.
The story is hard to believe and laughable that such a company like prime trust would be this negligence to lose their private keys understanding fully the importance of those keys not just to them but to the multitude of investors that have placed their financial trust on them. There's more to this story that we can't determine at this stage and time.
If the keys are later to be found by some anonymous group or fellow years probably when the case would died down then I'll believe what the tiny voice in my ears is telling me, that yeah it may be an exit plan and not negligence.
This is what will continue to happen as people continue making same mistakes of keeping their funds in the custody of a third party. When you care-less of taking responsibility of your private keys by holding your funds in a selfcustody wallet you should be ready to accepts these sorts of stories because it will keep happening one way or the other, accept it or not.
Yeah, sooner or later the truth will come as this is still a developing story and news but one thing is for sure that they've filed for bankruptcy. I remember that story also about killed CEO that he's the only one who knows the keys. I think that we're seeing the same story and style but if the story about that and life was taken for real, rip to him.
