Prime Trust estate wins $9 million default judgment against Poloniex
Protos reported that the Prime Trust estate won a $9 million default judgment against Poloniex, which Justin Sun owns, over transfers made before Prime Trust's bankruptcy.
Why it matters
The judgment extends a bankruptcy estate's clawback claims from a defunct lender to a currently operating exchange, and the same Sun-owned entities are being pursued by two separate estates. Only one outlet covers this, so the amount, scope and timing of the ruling remain single-sourced.
Key facts
The Prime Trust estate won a $9 million default judgment against Poloniex.
9,000,000 USDReported by Protos
The judgment is currently directed at Polo Digital Assets LTD, the firm that operates Poloniex.
Reported by Protos
Poloniex is owned by Justin Sun.
Reported by Protos
The Prime Trust estate filed an adversary proceeding against Justin Sun and Poloniex over preferential transfers of property before the Prime Trust bankruptcy.
Reported by Protos
Prime Trust transferred over $9 million to Poloniex and Justin Sun before its bankruptcy.
9,000,000 USDReported by Protos
Prime Trust ended its relationship with Sun-linked entities including Poloniex while an SEC lawsuit against Sun was still pending, a case Protos says has since been dropped.
Reported by Protos
Protos attributes Prime Trust's insolvency to failures to adequately custody cryptocurrency and to the use of customer deposits to cover the resulting shortfall.
Reported by Protos
The FTX estate has filed suit against Sun-owned HTX and Poloniex as well as against Sun himself.
Reported by Protos
What happened
Protos reported that the Prime Trust estate has won a $9 million default judgment against Poloniex, the exchange operated by Polo Digital Assets LTD and owned by Justin Sun. The estate filed an adversary proceeding against Sun and Poloniex over transfers of property that the estate says were preferential, made shortly before Prime Trust's bankruptcy. According to Protos, Prime Trust ended its relationship with Sun-linked entities including Poloniex because of the then-pending SEC lawsuit against Sun, and then transferred more than $9 million to Poloniex and Sun. The bankruptcy followed, and Protos attributes it to failures in custodying cryptocurrency and to Prime Trust using customer deposits to cover a shortfall. The judgment currently binds Polo Digital Assets LTD only, and the estate is still seeking discovery against Sun himself. Protos also notes the FTX estate has filed suit against Sun, HTX and Poloniex in separate adversary proceedings. No response from Poloniex, Polo Digital Assets or Sun appears in the evidence available to the desk.
How the story developed
- First report
First report by Protos
Prime Trust wins $9M judgment against Justin Sun-owned Poloniex
- Update
Prime Trust ends ties with Sun-linked entities and transfers funds
Shortly before bankruptcy, Prime Trust ended its relationship with entities associated with Justin Sun, including Poloniex, and transferred more than $9 million to Poloniex and Sun.
- Resolution
Default judgment entered against Polo Digital Assets LTD
The estate wins a $9 million default judgment; discovery against Sun himself is still being sought.
- Update
Prime Trust enters bankruptcy after insolvency
Protos links the bankruptcy to custody failures and to the use of customer deposits to cover the shortfall.
- Update
Estate files adversary proceeding against Sun and Poloniex
The suit seeks to claw back the transfers the estate calls preferential.
Affected entities
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Protos Crypto media | Prime Trust wins $9M judgment against Justin Sun-owned Poloniex | Original |
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