Beleaguered crypto platform put on the market
AUCKLAND: Underpressure cryptocurrency trading platform BitPrime has been put up for sale after failing to secure a capital injection, RNZ has been told.
The local company, which is one of the bigger players in the domestic market, was forced to suspend trading on its platform in May after a ‘‘perfect storm’’ of a decline in trading, rising costs and a volatile crypto market created liquidity issues.
RNZ reported in June that the firm had secured bridging finance and resumed its overthecounter service while it negotiated with three unnamed parties about a potential recapitalisation plan.
At the time, BitPrime chief executive Ross CarterBrown said its options included a merger, an outright sale or selling a majority stake in the business.
His preference was for an emergency injection of capital so the company could resume normal trading and resurrect plans for a capital raise later this year.
However, it appears negotiations have fallen through.
RNZ has been told the company had been put for sale as a going concern.
BitPrime was yet to make a formal announcement but the company’s website was running a banner saying it was not taking new customers and that an update was pending.
It was unknown what a sale of the business would mean for its daytoday operations or the company’s 30 staff, who were based in four countries.
The Christchurchbased firm was founded in 2017 and was controlled by Ross CarterBrown and Monique Wright.
The business told a select committee hearing in February that its platform had 46,000 users and it generated domestic trading volumes of more than $100 million per year.
BitPrime estimated the domestic market had volumes between $300 million and $400 million annually, which implied it controlled between a quarter and a third of the domestic market.
Unlike some international exchanges, BitPrime did not hold any of its customers’ assets.
A smaller segment of the business operated an overthecounter platform which was aimed at institutional and highnet worth investors.
Those assets were held a by a thirdparty custodian. — RNZ