Court orders Poloniex to pay $9M to Prime Trust estate

The estate of Prime Trust secured a $9 million default judgment against Poloniex, which is owned by Justin Sun. Prior to the Prime Trust bankruptcy, the estate had initiated an adversary proceeding against Sun and Poloniex concerning preferential property transfers.

Not long before entering bankruptcy, Prime Trust decided to cut ties with Sun-linked entities such as Poloniex, citing the then-active SEC lawsuit against Sun (which has since been dropped).

That move resulted in Prime Trust sending more than $9 million to Poloniex and Sun.

Prime Trust was forced into bankruptcy by severe insolvency stemming from its inability to properly safeguard its cryptocurrency holdings, followed by an attempt to cover the deficit with customer deposits.

The Prime Trust estate then brought this action to recover the money sent to Sun and Poloniex, and Poloniex now faces a default judgment exceeding $9 million.

At present, the default judgment applies solely to Polo Digital Assets LTD, the operator of Poloniex. The Prime Trust estate continues to pursue discovery from Justin Sun personally.

Poloniex is not the sole Sun-controlled business facing adversary actions; the FTX estate has likewise filed a lawsuit against Sun-owned HTX, Poloniex, and Sun individually.