A regulated trust company that provided custody rails to multiple platforms lost access to wallets and covered customer withdrawals using other customers' assets before filing for bankruptcy.
Qualified custodian is a regulatory status, not a verified security architecture. The licence does not confirm that the keys were competently managed.
These are the custody configurations structurally exposed to this kind of event. It describes the failure class, not any individual holder.
Whether your own arrangement sits in one of those groups is the question our Custody Independence Standard is designed to answer, and the four questions in Is your custody setup actually safe? walk through it.
Nevada regulator filings, Chapter 11 filings
Figures are as reported by the named sources. Proof of Custody has not independently reproduced the underlying analysis.
Proof of Custody, "Prime Trust" incident record, proofofcustody.io/incidents/prime-trust-2023A regulated trust company that provided custody rails to multiple platforms lost access to wallets and covered customer withdrawals using other customers' assets before filing for bankruptcy. Reported loss: Customer shortfall.
Qualified custodian is a regulatory status, not a verified security architecture. The licence does not confirm that the keys were competently managed.
This class of failure could reach: single qualified custodian; bitcoin left on an exchange. It describes the failure class rather than any individual holder.