More Swan Alarms - just be careful! (Patreon)

TLDR. Way too much smoke. If your funds are on Swan, it's time to play it safe and withdraw ASAP. Remember, in the Wild West of crypto, trust but verify... then withdraw! Or buy an ETF! Safety first. Takes a lifetime to make it and we all know what went down in 2021!

Legal Docs here:

Here are the details so far from public statements:

Swan Bitcoin has navigated through several significant events regarding its custody arrangements and the custodians it has worked with:

Prime Trust and Fortress Trust: Swan initially used Prime Trust as its custodian for customer funds. However, Prime Trust faced financial difficulties and eventually filed for bankruptcy in 2023. Swan Bitcoin managed to transfer its customers' assets to Fortress Trust and BitGo before Prime Trust's collapse. Fortress Trust was later acquired by Ripple, which stirred some controversy given Swan's CEO Cory Klippsten's previous criticisms of Ripple. There are now suits between Cory and Ripple! Ripple has bigger pockets and can bury Swan.

Fortress Trust Security Incident: There was an incident where Fortress Trust reportedly lost funds from its hot wallets, although Swan Bitcoin claimed that their customers' Bitcoin was not affected as it was held in insured cold storage with BitGo. Yeah I am confused too.

Current Custody Situation: Swan Bitcoin has since moved its custody to Bakkt, a move announced in their customer communications to ensure the security and segregation of clients' assets.

Legal proceedings involving Swan Bitcoin, particularly linked to the fallout from Prime Trust's bankruptcy there's mention of customer deposits being tied up in these proceedings, but Swan has maintained that customer funds are in individual, legally segregated trust accounts, which traditionally would protect them from such legal actions. We shall see.

Summary:

Swan Bitcoin has changed its custodians from Prime Trust w Bitgo to Fortress Trust and then to Bakkt, amidst the bankruptcy of Prime Trust and security concerns at Fortress.

If you are concerned about the safety of your Bitcoin with Swan or any other platform, it's advisable to:

Withdraw!