Nevada regulators have applied to take over Prime Trust, stating that it is unable to meet its debt obligations

2023-06-28 08:09:28

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ChainCatcher news, according to The Block, the Financial Institutions Division (FDI) of Nevada has announced that it has requested a court in Nevada to appoint a receiver to take over the daily operations of Prime Trust and thoroughly examine its financial situation to determine the best options for Prime's clients, either to restructure and return the company to private management or to liquidate it. The regulator stated that Prime's operations are unsafe and unsound, and the company lacks the funds to pay customer deposits and cannot continue cryptocurrency custody services.

Previous news, Prime Trust lost access to old wallets as early as 2021 and used customer assets to repurchase cryptocurrencies. Prime Trust owes customers $85.67 million in fiat and $69.509 million in digital currency, but currently holds only $2.904 million in fiat and $68.648 million in cryptocurrency. (The Block)

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