Prime Trust Placed Into Receivership Over Fund Shortfall and Allegations of Customer Money Misuse
According to a filing with Nevada's Department of Business and Industry Financial Institutions Division, the company is in a state where conducting business is considered "unsafe or unsound."
Because Bitcoin
July 18, 2023
CoinDesk reported that the Eighth Judicial District Court of Nevada, where crypto custodian Prime Trust is headquartered, has ordered the company to be placed into receivership. This decision comes after the state directed Prime Trust to halt all activities due to a shortfall in customer funds and allegations of using customer funds to fulfill withdrawal requests.
According to the filing with Nevada's Department of Business and Industry Financial Institutions Division, Prime Trust's financial condition has significantly deteriorated, leaving the company in an unsafe and unsound state to conduct business.
John Guedry, the president of Bank of Nevada, will take over the company's operations, as stated in the filing. In June, the Nevada regulator initiated the takeover and froze all of Prime Trust's businesses, alleging the company to be on the brink of insolvency.
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