The Nevada court in the United States has approved the cryptocurrency custodian Prime Trust to enter bankruptcy management

ChainCatcher news, CoinDesk reports that the Eighth Judicial District Court of Nevada has approved the entry of cryptocurrency custodian Prime Trust into bankruptcy management. Previously, Nevada had ordered the company to cease all activities and accused it of using customer funds to meet withdrawal requests.

According to documents submitted to the Financial Institutions Division (FDI) of the Nevada Department of Business and Industry, Prime Trust's overall financial condition has severely deteriorated, placing the company in an unsafe or unsound trading situation, and its business will be taken over by Nevada Bank President John Guedry.

Previous report states that in June of this year, Nevada regulators announced they had applied to take over Prime Trust and froze all its operations. Another cryptocurrency custodian, BitGo, terminated its acquisition of Prime Trust. It is reported that Prime Trust owes customers $85.67 million in fiat and $69.509 million in digital currency, but only holds $2.904 million in fiat and $68.648 million in cryptocurrency. Regulators also accused Prime Trust of using funds from customer accounts to meet withdrawal requests from old wallets.