Administrator: “We’re Moving Toward Resolution”
At Monday’s session, attorney Donald Detweiler, representing the plan administrator, told the court that litigation efforts were also ramping up. A litigation trust formed under the plan has already filed dozens of clawback suits targeting previous transfers, while additional actions are underway against Prime Core’s former directors and officers.
Detweiler said claims reconciliation should be finished by year’s end, clearing the path for the administrator to begin distributing recoveries. To streamline the process, a dedicated website portal has been launched for creditors to verify and submit their information.
“We think the website is a unique way to get it done,” Detweiler told the court, describing the platform as a more transparent and efficient method to manage claims.
The Final Countdown for Creditors
After a year of turmoil following the Prime Core Chapter 11 filing, creditors are finally seeing a light at the end of the tunnel. With $35 million now in hand, the estate is poised to begin payouts in 2026—though the litigation over clawbacks and insider actions may still shape how much each creditor ultimately receives.
Prime Core’s saga, marked by lost trust and frozen assets, is becoming a cautionary tale in the volatile world of digital finance—where one failed custodian’s missteps could ripple across the crypto landscape.
