Nevada’s Financial Institutions Division has filed a petition for the appointment of a receiver to Prime Trust, citing financial liabilities to its users amounting to over $82 million in fiat and $800,000 in crypto.
The filing also revealed that Prime Trust only had around $2.9 million in fiat and roughly $68.6 million in crypto to cover these liabilities. This follows the regulator’s cease and desist order on June 21, stating that Prime Trust was “unable to honor customer withdrawals due to a shortfall of customer funds”. BitGo also announced on June 22 that it would no longer acquire Prime Trust. The court filing called for an immediate appointment of a receiver to avoid irreparable harm to customers, public confidence, and the emerging market of cryptocurrency. The custodian has stipulated to the receivership based on the “substantial deficit between its assets and liabilities.”
Title: Nevada Regulator Files Petition to Put Crypto Custodian Prime Trust into Receivership
Categories: Cryptocurrency, Finance, Regulation