Crytocastodian Prime Trust spent $6 million of client funds and $2 million from its own coffers to invest in collapsed algorithmic stablecoin TerraUSD (UST). This was revealed by platform head Jor Lo in a court filing.
Lo testified as part of the bankruptcy proceedings of the firm, which he headed on November 29, 2022. He cited mismanagement of the company by the previous management.
Lo cited an incident that occurred in January 2021 as an example. Back then, customers were mistakenly asked to transfer money to a wallet inaccessible to Prime Trust. After that, the company had to spend $76 million to buy ETH to fund withdrawal requests.