BitGo cancels Prime Trust acquisition.

The acquisition of competitor custody specialist Prime Trust by cryptocurrency custodian BitGo has been terminated.

BitGo made this decision after putting in “considerable effort and work to find a path forward with Prime Trust,” according to the firm’s tweet on Thursday.

BitGo added, “This decision was not made lightly and BitGo remains committed to our mission to deliver trust in digital assets.”

Prime Trust has been losing clients and deposits to competitors for weeks due to concerns about its business, according to a source at one of the former clients who spoke to blockchain.

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Following speculation that the Nevada-regulated custodian was facing bankruptcy, BitGo had reached a preliminary agreement to acquire Prime Trust earlier this month.

The firms have not yet responded to blockchain’s request for further comment.

UPDATE (June 22, 14:10 UTC): Adds additional paragraph about Prime Trust losing clients and depositors and adds second byline.

Edited by Parikshit Mishra.