The bankruptcy of a Prime Trust subsidiary is yet another indication that ‘crypto winter’ is a long, long way from thawing, CoinGeek.com reported. On Tuesday, Nevada-based crypto-friendly payment processor Banq Inc filed for chapter 11 bankruptcy protection, citing the “unauthorized” transfers of $17.5 million worth of assets to non-fungible token (NFT) projects set up by a trio of former Banq executives, including its founder and former CEO Scott Purcell. In May 2022, Banq filed a civil suit in federal court against its former execs for having stolen its technology and “significant other value of Banq’s” and used the ill-gotten gains to launch Fortress NFT and Planet NFT. Banq accused the execs of violating non-disclosure agreements and the Nevada Uniform Trade Secrets Act. Banq claimed that in May 2021, then-CEO Purcell abruptly informed Banq shareholders that he was “suspending all sales and marketing efforts … just as [Banq] was beginning to generate revenue.” Purcell said he’d decided to ‘redirect’ Banq’s focus toward NFT wallet technology. In July 2021, Purcell had Banq take out a $3 million loan from Delaware-registered N9 Advisors LLC to further this reorientation.
