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Roth IRA, iTrust Capital - PrimeTrust + Fortress Trust (Patreon)

Published:
2023-06-23 22:49:45
Imported:
2023-06

Content

ok part II - Disclaimer: I am not a lawyer, and this is all based on my understanding of the situation from what I have learned today while being very busy with other things.

folks are worried now about iTrust Capital, Swan Bitcoin etc

DEAD: Prime Trust is a Nevada-chartered trust company that offers a wide range of services, including custody, trading, and payments. It is a regulated financial institution, which means that it is subject to strict oversight by the Nevada Financial Institutions Division. 

MOVED TO: Fortress Trust is a wholly-owned subsidiary of Fortress Blockchain Technologies, a software development firm that specializes in Web3 infrastructure. Fortress Trust is not a regulated financial institution, but it does offer a number of services that are similar to those offered by Prime Trust.

The two companies have a number of partnerships, including a partnership with Treasury Prime, a BaaS (Banking-as-a-Service) provider. Through this partnership, Fortress Trust can offer its customers access to fiat currency services provided by BankProv, a traditional bank. In addition, Prime Trust and Fortress Trust have both been involved in the development of the Fnality Network, a blockchain-based settlement network for financial institutions.

THE MEAT

  • Prime Trust received a Cease & Desist order from its state regulator due to an alleged shortfall of customer funds.
  • Trust companies like Prime Trust should not have the capacity to lose customer funds unless there’s fraud or direct violations of the law.
  • Prime Trust is a Nevada trust, received a C&D order from the Nevada Financial Institutions Division (NFID).
  • A Trust Bank is like a 'narrow bank'. They have no power to lend. They cannot create assets. They cannot rehypothecate. So what did Prime Trust do with customer's assets? Prime Trust cannot use those assets as a source of funding.
  • The situation at Prime Trust suggests serious breaches of trust and fiduciary duties. This could have repercussions not just for the entity, but also for the credibility of state trust charters at large. State charters underpin exchanges: Coinbase, Gemini, and Kraken. Congressional support for state-chartered entities in stablecoin issuance and access to payment systems could wane.
  • PRIME TRUST Team are now Fortress playing with NFTs - potentially continue to be shady characters 

Out of an abundance of caution, I would suggest considering WITHDRAWAL of your CRYPTO FROM ANY PLACE THAT HOLDS IT. ESP SWAN, ITRUST, etc




Files

Comments

Anonymous

oh, you can also do an in-kind transfer of your bitcoin from iTrust to Unchained. no buying, no selling, no tax event.

Anonymous

Out of caution, I sold all my crypto holdings in iTrust an hour ago and was able to initiate a transfer of funds to my Fidelity traditional IRA. So far so good. Because of my caution, I am sure nothing will happen with iTrust 😂, but it’s too strange to risk.

Anonymous

I just reached out to Fidelity and they have a Roth IRA. Once we set it up, they give us instructions to transfer the USD from our former Roth IRA to them. Seems from others comments, as well as James in an above thread, that Fidelity is one of the preferred brokerage firm. Just sharing what I am going to do with my “bag” on iTrust. Thanks everyone for your comments above! And, thanks James for letting us know.

Anonymous
>>111397717

CGdreams, I have a Traditional IRA on Fidelity. I just sold BTC on iTrust into USD. Can you tell me what process your followed to initiate the transfer of funds from iTrust to Fidelity please?

Anonymous
>>111397717

Log into fidelity laptop or desktop, click transfer in black drop down menu, second box from the left. Under account basics, move money from - drop down to Transfer an account to Fidelity, continue to follow prompts. It will ask for upload of recent statement which I downloaded from iTrust a PDF.

Anonymous
>>111397717

Inside iTrust under My Account it should list current account statement to download.

Anonymous

Swan has already moved from prime to fortress

Anonymous
>>111398530

Do you know if one has a Roth IRA at Fidelity, can we buy/sell crypto (BTC/ETH)?

Anonymous
>>111397714

Does that eliminate the risk of iTrust going down or is it safer to shift to USD first? like this idea but dont know much about unchained. iTrust has been shilled for a while by all the influencers

Anonymous
>>111397714

if you shift to USD iTrust will charge you a sell fee and that would also be considered a taxable event. you would then have to buy back into bitcoin at a later unkown amount and pay fees and the spread. i would do an in-kind transfer. i just did that a couple months ago. the beauty of this is that you control the majority of the keys in a multi-sig arrangement. Unchained holds one key and does so in case you lose one of your keys. self-custody is the goal here.

Anonymous

I have iTrust account and sold all my crypto the second I read the post from James. I have lost money in Voyager, Celsius, AND FTX!!! I’m done with losing funds and took immediate action. I called iTrust right after selling my crypto. I will be transferring my funds to another regular Roth IRA. It’s not a quick process and will likely take days or more to complete the transfer. I hope I don’t get robbed of my money again! This is not worth it for me.

Anonymous

I reset my password and was able to finally login. I am not sure what was going on but it’s seems ok now.

Anonymous

James, i just market sold on iTrust and requested a fund out. I'm F***ing tired of having to frequently move accounts because of cracks in the system or just blatant mismanagement. As soon as the funds clear i'm going to buy MSTR in my IRA and call it a day.

Anonymous
>>111406996

I’m so sorry. All 3 jez! I’m so glad you got out in time Best of luck

Anonymous

Man it’s so neat how you guys and gals are looking out for each other. I wish you all the best possible outcome. It’s a wonderful place here. Especially in hard times! I thank you James, once again, for creating such a sweet community 🏆

Anonymous

What I learned from James is don't trust anyone! Self custody! It is very difficult to trust anyone

Anonymous
>>111398530

I checked out their website and it seems like it; however, I am open to holding ETHE &/or GBTC-MSTR until the coast is clear. I can always port back to iTrust if they prove themselves worthy. I was burned by Celsius & Luna and am not ever taking chances again, when warned. Good luck 😉

Anonymous

This is a good analogy https://www.facebook.com/reel/786908263108501?fs=e&s=TIeQ9V&mibextid=0NULKw

Anonymous

Any more news on ITrust? Just saw this, this morning. What about Strike? I saw their name but I think they now have their own infrastructure.

Anonymous

Thanks for the heads up James!!

Anonymous

Here is a statement from OG of Prime Trust: https://www.crowdfundinsider.com/2023/06/209154-prime-trust-founder-and-former-ceo-scott-purcell-says-firm-in-receivership-incredibly-sad-to-see/

Anonymous

It appears Prime trust doesn’t own fortress capital. The original founder of prime trust left and started up fortress capital. - https://www.crowdfundinsider.com/2022/04/190274-prime-trust-founder-building-regulated-custodian-for-nfts-with-fortress-blockchain-technologies/amp/

Anonymous

Here's their statement: https://www.crowdfundinsider.com/2023/06/209154-prime-trust-founder-and-former-ceo-scott-purcell-says-firm-in-receivership-incredibly-sad-to-see/amp/

Anonymous

teetering between using bitcoin ira or selling and buying GBTC on fidelity for my IRA for on itrust. ugh!!! If only fidelity had a BTC IRA.

Anonymous

Really appreciate the heads up on this from the team! I have an account with ITrustCapital and just decided to pull my funds off and transfer it to Fidelity. It’s sad we can’t even trust custodians anymore, they literally only have one job and they can’t even do that right.

Anonymous

When I transferred fiat from my Fidelity IRA to open a new iTrust IRA, BTC and other cryptos were much higher (bad timing). Now, to move funds off of iTrust and back to the Fidelity IRA, I will have to convert crypto back to fiat which means selling at a significant loss. This is difficult and confusing to weigh options and outcomes.

Anonymous
>>111436142

Hi Goosy - When you switched crypto back to fiat, did you sell at a loss and, if so, do you expect you'll be able to recover those losses back on the Fidelity IRA with GBTC and MSTR going forward?

Anonymous

https://www.linkedin.com/posts/scpurcell_lots-of-noise-about-prime-trust-and-people-activity-7072603363242086400-lwUw?utm_source=li_share&utm_content=feedcontent&utm_medium=g_mb_web&utm_campaign=copy

Anonymous
>>111437462

I'm in the same boat--it looks like doing an in-kind transfer of BTC from iTrust to Unchained is an option. See Jerome Hyde's message above.

Anonymous
>>111437462

Hi EmmaRose - Thank you for your comment and for contacting iTrust several times. I looked into an in-kind transfer to Unchained but the fees there are quite high and it might not be worth it in the end. I'm still weighing the decision to convert BTC to fiat at a loss, then transfer that fiat back to Fidelity where GBTC and MSTR should continue the ride up. Maybe it would be a wash, but my math isn't good enough to figure this out. The other option is to wait a bit for additional information.

Anonymous
>>111437462

Yes, I noticed fees are high at Unchained and not sure if it is necessary just yet. I have decided to wait a day or two and let the dust settle and get more info. I found it very helpful to speak to Trent at iTrust and plan to call again on Monday and ask more questions. Trent basically told me the same thing Scott Purcell says in his LinkedIn post. Scott set up Prime Trust about 3 years ago and has nothing to do with them now. Trent seemed confident about Fortress---but who knows...

Anonymous
>>111440437

Thank you for posting that. It's hard to know what to believe.

Anonymous
>>111440437

Agreed, while it looks like Prime Trust broke rules, I’m not sure I see anything credible to warrant lack of confidence in Fortress. Am I missing something?

Anonymous
>>111440437

Good question and comment. We need solid info in order to make an informed decision.

Anonymous
>>111437462

I don't want to be rash and, like you, am choosing to wait a bit before pulling the trigger. Please keep us posted as your thoughts change and I will do the same. The shared information in this community is a blessing.

Anonymous
>>111440437

Would love to see Fortress bring in a credible third party and regulator to verify serration and 1:1 ASAP, I feel like it would be well worth it for them and every business that is using them as a custodian

Anonymous

I wish I could just transfer my Itrust IRAs directly into my Fidelity Crypto account now. ‘At this time, cryptocurrency transfers into you Fidelity Crypto account aren’t possible, but we’re working on updates and new features’. Been buying small amounts of BTC on Strike and moving it to my ledger. But it just nibbles. Doesn’t sound appetizing to take penalties by cashing out my Trad and Roth IRAs from Itrust either but is it worth it? Cash out and buy BTC on Fidelity or self store on ‘back door Ledger’ jeez just as things are getting exciting!

Anonymous
>>111440437

That's a good idea @LeftSide. I'll ask Trent at iTrust if something like that could be done. they are losing a lot of customers.

Anonymous
>>111449638

I’m no accountant but you should be able to move (rollover) funds from one quantified IRA account to another with having to pay any capital gains tax as rolling over and withdrawing are very different.

Anonymous
>>111449638

Thanks -yes no penalty for rollover, just considering ‘cashing out’ with penalty to buy BTC and self store

Anonymous
>>111436142

Hello! I did indeed take a loss sadly. I do believe I’ll be able to recover what I did lose with GBTC, ETHE, CLSK, and MSTR. Fortunately it wasn’t a big loss and I believe by the time the bull market is in full swing my portfolio should be well in the green with those proxies.

Anonymous
>>111437462

I don't believe that I am at a huge loss. But I have to check. I don't know, so this is what chatgbt tells me about fireblock, which is the service iTrust capital uses. "Fireblocks is a platform and not a custodian itself. However, Fireblocks allows financial institutions to store, move, and manage digital assets securely by integrating with various custodians. Some of the custodians that Fireblocks integrates with include BitGo, Anchorage, Celsius, Gemini, and Coinbase Custody. These custodians hold the digital assets on behalf of institutional clients, while Fireblocks provides the infrastructure to securely transfer the assets between different parties."

Anonymous
>>111437462

I have not performed the transaction. But sometimes it is best earlier so in the future the penalty or accidental loss due to mismanagement is not huge. I may take some time, but once I decided to move how much and where, I am going to do it, is my plan.

Anonymous

I only recently finished setting up and funding my iTrust Capital IRA. What about converting all assets to dollars (USD)? It said all USD was FDIC insured. Think that is sufficient protection??