Swan Bitcoin sued for allegedly using insider information to avoid losses ahead of Prime Trust collapse, says Decrypt.

Swan Bitcoin hit with nearly $1 billion lawsuit tied to Prime Trust collapse, escalating crypto custody legal risks on May 18, 2026.

According to @iampaulgrewal, an amicus brief has been filed in the Prime Trust bankruptcy case, advocating for the Court to affirm that assets held by Article 8 custodians belong to the customers, as stated in both their and Prime Trust's user agreements. This decision could impact how customer assets are treated in custodial bankruptcies, directly affecting trading strategies and risk management for investors and traders using custodial services.