Lawsuit alleges Swan Bitcoin avoided losses using insider information before Prime Trust’s 2023 collapse.
Swan Bitcoin is being sued for nearly $1 billion in assets tied to the 2023 Prime Trust collapse. The lawsuit, filed by PCT Litigation Trust, seeks repayment of approximately 12,000 Bitcoin and other cryptocurrencies, including stablecoins and XRP.
The suit claims Swan Bitcoin used non-public information to transfer assets before Prime Trust filed for bankruptcy, avoiding significant losses. Prime Trust shut down in June 2023 after regulators found it heavily indebted, later filing for Chapter 11 protection in August.
The legal action targets Swan’s alleged access to insider knowledge, which reportedly allowed it to sidestep the financial fallout faced by other customers. No immediate market reaction was disclosed in the filing.