The Nevada Department of Business and Industry has issued a cease and desist order to crypto custodian Prime Trust, alleging that the financial condition of the firm has “considerably deteriorated”, making it incapable of honouring customer withdrawals. The regulator claims that Prime Trust has materially breached its fiduciary duties to customers by failing to safeguard assets under its custody and is unable to meet all customer disbursement requests.
The payments subsidiary of Prime Trust, Banq, filed for bankruptcy protection in the United States on June 13, while digital asset custodian BitGo has cancelled its acquisition of Prime Trust. Prime Trust has 30 days to respond to the cease and desist order and can request an administrative hearing to contest the order.
Categories:
- [object Object],[object Object],[object Object]