Crypto custodian Top Believe filed for Chapter 11 economic kill safety in Delaware after going by a shortfall in customer funds.

In an Aug. 15 filing, the agency estimated between 25,000 to 50,000 collectors, and the five greatest claims amounted to a entire of $105 million. The single greatest unsecured creditor had a claim of $55 million, with the 2nd greatest owed a entire of $31.7 million.

Top Believe acknowledged its liabilities had been between $100 million to $500 million in preference to its sources which fell between the $50 million and $100 million differ.

“The Company intends to file a preference of motions with the Financial kill Court designed to facilitate the Company’s good evaluate of all strategic that you simply would possibly perhaps presumably well stutter of picks, collectively with potentially a sale of the Company’s sources and operation,” acknowledged the agency in a press free up.

The economic kill filing follows the agency being placed into receivership final month, after the Nevada Division of Industry and Industry’s Financial Institutions Division (FID) chanced on that the agency used to be unable to honor customer withdrawals. The FID ordered Top Believe to live all operations as it used to be in violation of Nevada rules.

The crypto custody agency broken-down to service about a of the greatest corporations within the crypto home, collectively with FTX, Binance.US and Celsius Network.

The FID’s investigation chanced on that Top Believe used to be unable to access about a of the wallets the put it stored customers’ crypto holdings in December 2021. Between then and March 2022, the agency reportedly bought further cryptocurrency the exhaust of customer funds to honor some withdrawal requests.

The regulator additionally chanced on that the agency owed over $85 million price of fiat to its purchasers, nonetheless had not up to $3 million accessible.