NYKNYK.

Some clarification...

"When Prime Trust filed for Chapter 11 bankruptcy in 2023, the court ruled that all cryptocurrency and fiat holdings in Prime Trust accounts, including those of Swan Bitcoin customers, became part of the bankruptcy estate. This means all assets were commingled and are now subject to liquidation and distribution to creditors on a pro-rata basis in U.S. dollars rather than as in-kind Bitcoin.

Swan Bitcoin took proactive measures by encouraging its customers to withdraw their Bitcoin from Prime Trust before the bankruptcy issues escalated, which helped many avoid direct losses. However, any balances still held by Prime Trust at the time of bankruptcy are now caught in the liquidation and claims process.

Swan Bitcoin customers who successfully withdrew their Bitcoin before Prime Trust's collapse face minimal risk. But those with assets remaining in Prime Trust accounts may face delays, uncertainty, and possibly receiving dollarized payouts instead of Bitcoin. The bankruptcy court set deadlines and KYC verification processes for claimants to recover funds.

In summary:

Prime Trust's bankruptcy affects Bitcoin held on its platform, including those for Swan Bitcoin customers.

Swan Bitcoin managed to safeguard most customer assets by prompt withdrawals.

Customers with assets still held at Prime Trust face exposure to bankruptcy proceedings and potential loss or dollarization of Bitcoin holdings.

The case underscores risks inherent in custodial services versus self-custody in crypto.

This means current Swan Bitcoin customers are at low risk if they have followed recommendations to self-custody and withdraw assets from Prime Trust, but those with funds still held there face creditor risks in the ongoing bankruptcy."