Prime Trust wins $9M judgment against Justin Sun-owned Poloniex

The Prime Trust estate has won a $9 million default judgement against Justin Sun-owned Poloniex. The estate previously filed an adversary proceeding against Justin Sun and Poloniex related to preferential transfers of property before the Prime Trust bankruptcy.

Shortly before its bankruptcy, Prime Trust chose to end its relationship with entities associated with Sun, like Poloniex, because of the then ongoing (since dropped) SEC lawsuit against Sun.

This decision led to Prime transferring over $9 million to Poloniex and Sun.

Prime Trust was then thrust into bankruptcy after deep insolvency caused by failures to adequately custody its cryptocurrency and subsequently using customer deposits to attempt to fill the shortfall.

Subsequently, Prime Trust filed this suit to claw back the funds it transferred to Sun and Poloniex, and Poloniex is now on the hook for over a $9 million default judgement.

Currently, this default judgement is only against Polo Digital Assets LTD, the firm that operates Poloniex, and Prime Trust is still seeking discovery on Sun himself.

Poloniex isn’t the only Sun-owned entity currently being pursued in adversary proceedings, as the FTX estate has also filed suit against Sun-owned HTX and Poloniex (as well as Sun himself).