Regulator: Prime Trust has a "shortage of customer funds" and is unable to meet all withdrawal requests for the month

2023-06-23 09:25:24

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ChainCatcher news, according to CoinDesk, the Nevada Department of Business and Industry stated on Thursday that the crypto custody company Prime Trust has a "shortfall of customer funds" and is unable to meet all withdrawal requests for this month. The Nevada Financial Institutions Division (FID) ordered Prime Trust to cease all activities that violate Nevada state regulations, claiming that the company's "overall financial condition has severely deteriorated," with significant operational deficits and potential insolvency. The Nevada FID indicated that Prime Trust may not be able to continue operating in a reasonable manner and has violated its fiduciary duties.

It is reported that as of the end of March 2023, Prime Trust reported shareholder equity of over negative $12 million. Prime Trust can request a hearing within 30 days of the order being issued; otherwise, the cease-and-desist order will be considered a final order.

ChainCatcher previously reported that the crypto custody company BitGo announced the termination of its acquisition of Prime Trust. (source link)

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Prime Trust FID

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