EXCLUSIVE: American Clawback Machine Reaches Lekki As Blinqpay Corp Is Sued In Delaware To Return N1.3 Billion Paid Out By Collapsed Crypto Custodian Prime Trust

Secrets Reporters

The money is $817,986.65, and the address it travelled to is 1A Remi Oluwude Street, off the Lekki Epe Expressway in Eti-Osa, Lagos. The PCT Litigation Trust, the body created under the bankruptcy plan of the collapsed American crypto custodian Prime Trust to pursue the company’s claims and distribute what it recovers, has sued Blinqpay Corp at that Lekki address in the United States Bankruptcy Court for the District of Delaware, demanding the return of transfers Prime made to the Lagos company in the ninety days before Prime went under.

Filings exclusively seen by SecretsReporters show the complaint, adversary proceeding number 25-52062 in the jointly administered Chapter 11 cases of Prime Core Technologies Inc., Prime Trust, LLC, Prime IRA LLC and Prime Digital, LLC, case number 23-11161, was filed on August 14, 2025, two years to the day after Prime filed for bankruptcy. The Trust, administered by its trustee, David Dunn, took the debtors’ causes of action under the confirmed plan that was consummated on January 5, 2024. Blinqpay Corp stands as one of ten defendants, and the Trust pleads the Lagos company’s position in the alternative, that Blinqpay was either a customer of the integrator through which it dealt with Prime and an end user of Prime, or a transferee that received the transfers by or on behalf of that integrator or of an end user.

The transfers are set out line by line in Exhibit 4 to the declaration of James P. Brennan, the expert retained by the Trust, which the complaint attaches. Six outgoing transfers ran from Prime to Blinqpay between May 16, 2023 and June 13, 2023: $40,000 on May 16, $70,000 on May 23, $60,000 on May 26, $32,986.80 on May 31, $592,999.85 on June 1 and $62,000 on June 13, a gross outflow of $857,986.65. The same exhibit records a single incoming transfer of $179,090.22 dated May 17, 2023 and a credit of $40,000 for subsequent new value, leaving the net sum the Trust pursues from the Lekki company.

Blinqpay is the only Nigerian defendant in a suit that runs through London, Hong Kong, Switzerland and three American cities. The Trust pleads the largest sum against Leatherback Ltd, $130,246,771.81, of 3 London Bridge in London, which it describes as a customer of the integrator and an end user of Prime. JSCT Hong Kong Limited is pursued for $17,939,526.10 at Chater House in Hong Kong, B2C2 Overseas Ltd for $14,355,751.76 and AC Holding Limited for $4,998,300.00, both at 7-8 Savile Row in London, and Cumberland DRW LLC for $12,969,421.69 in Chicago. Zeux Ltd is named for $3,616,652.00 at Berkeley Square House in London, Backed Assets GmbH for $3,535,692.00 in Zug, Switzerland, M2 Trust Services LLC for $282,044.32 in Denver and Apex Crypto LLC for $129,588.81 in Chicago. Every sum is pleaded net of potential subsequent new value, the same basis on which the Lekki claim is computed.

Prime was once one of the most prominent crypto companies in the United States, and thousands of other crypto companies used it primarily to gain access to the American banking system by converting crypto to fiat. The fiat customers transferred to Prime was held in omnibus bank accounts in Prime’s own name, and their crypto was held in omnibus digital wallets in vaults Prime maintained at Fireblocks LLC, every customer’s money pooled with every other customer’s and with Prime’s own.

The complaint states that Prime tracked the pooled money on an internal ledger that was poorly maintained and later intentionally corrupted by Prime. Current and former Prime employees have admitted under oath that the ledger includes false information and falsified entries. The bankruptcy court has already found in its Distribution Opinion that the debtors hopelessly commingled assets, so that the fiat held is not traceable and the cryptocurrency cannot be traced, and Brennan has confirmed that it is impossible to identify, trace or distinguish the fiat or crypto any one customer put in from the money of Prime’s other customers or from Prime’s own.

The hole opened in December 2021, when Prime discovered it was unable to access a multi-signature digital wallet holding more than 11,000 ETH that had been transferred by one of its customers, a wallet the complaint identifies by the characters 98f at the end of its digital address. Because Prime did not hold enough ETH without that wallet to meet customer transfer requests, it went into the market to buy replacement ETH, and it funded those purchases with fiat from its omnibus bank accounts, which held customer money. Prime executives admitted under oath that the company created fake wire transfer entries on the internal ledger to make it appear the fiat had arrived from the liquidity provider that sold Prime the replacement ETH, when no such wire transfers ever occurred. Nevada’s Financial Institutions Division found that Prime purchased additional digital currency using customer money from its omnibus customer accounts, and that Prime owed its clients $85,670,000 in fiat currency but held $2,904,000. The complaint records that most of Prime’s customers suffered losses and have yet to receive any of the fiat or crypto owed to them.

The end ran through the same weeks the Blinqpay transfers were moving. On May 25, 2023, Prime’s chief executive met the Nevada Division in person and was told the company would likely be shut down in the near future. On June 21, 2023, the Division issued an order to cease and desist after finding Prime operating at a substantial deficit and insolvent and unable to satisfy all withdrawals, on June 26, 2023 it petitioned the Nevada court for a receiver, on July 14, 2023 the court placed Prime under receivership, and on August 14, 2023 Prime filed its Chapter 11 cases. The complaint draws the preference period from May 16, 2023 to that petition date, and every Blinqpay transfer in Exhibit 4 falls inside it.

The Trust’s claim against each defendant is built in three counts. Count I seeks avoidance of the transfers as preferences under section 547(b) of the Bankruptcy Code, pleading that each transfer was of an interest in Prime’s property, made to or for the benefit of a creditor for or on account of an antecedent debt, made while Prime was insolvent, insolvency being presumed during the preference period under section 547(f), and that each transfer would enable its recipient to receive more than it would have received in a Chapter 7 liquidation. Count II, under section 550, seeks recovery of the avoided transfers from the defendant as initial transferee or as the entity for whose benefit the transfer was made, with interest at the maximum legal rate and costs. Count III, under section 502(d), asks the court to disallow any claim a defendant has filed or holds in the Chapter 11 cases unless and until that defendant pays the Trust the value of the transfers. The Trust states that the defendants have not repaid or returned any of the transfers, and that it took into account the known or reasonably knowable affirmative defences, including those under section 547(c), before filing.

The prayer for relief asks the Delaware court to enter an order finding the transfers avoidable preferential transfers under section 547, to award the return of the property to the Prime bankruptcy estates or monetary damages under section 550 together with the value of any additional avoidable transfers the Trust learns of through discovery or otherwise, to disallow the defendants’ claims under section 502(d) until they pay, and to award attorneys’ fees, pre-judgment and post-judgment interest and costs of suit. The complaint was filed for the Trust by McDermott Will & Schulte LLP of Wilmington, Delaware. It contains the Trust’s allegations alone, and no answer by Blinqpay Corp or by any other defendant appears in it.

The post EXCLUSIVE: American Clawback Machine Reaches Lekki As Blinqpay Corp Is Sued In Delaware To Return N1.3 Billion Paid Out By Collapsed Crypto Custodian Prime Trust appeared first on Secrets Reporters Nigeria - No Place To Hide.