Crypto Firm Prime Trust Placed Into Receivership By Nevada’s FID

Crypto Daily
Crypto Daily

28 Jun 2023 8:50 AM

Nevada’s Financial Institutions Division has placed Prime Trust into receivership, having taken control of the company, and has frozen its businesses and operations....

  • Nevada's Financial Institutions Division has placed crypto firm Prime into receivership and frozen its businesses and operations.
  • Prime Trust, a financial infrastructure provider for Binance US and others, allegedly lost access to several legacy crypto wallets in 2021.
  • The company owes its clients over $85 million in fiat and $69.5 million in crypto, but only has $3 million in fiat and $68 million in crypto assets available.
  • BitGo recently called off its bid to acquire Prime Trust, and the state of Nevada issued a cease-and-desist order alleging insolvency.
  • Prime Trust entered into an agreement with Fireblocks in 2020, but lost access to its legacy wallets in December 2021, resulting in the loss of cryptocurrencies held within them.
  • The company allegedly used clients' fiat currency accounts to purchase crypto assets to process withdrawals.
  • The filing requests the appointment of a receiver to examine the company's finances and determine the best option to protect clients.

The article highlights the financial troubles faced by Prime Trust, with allegations of lost access to wallets and a significant deficit. The sentiment is negative, reflecting the challenges and potential harm to clients.

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You May Ask

Why did Nevada's Financial Institutions Division place Prime Trust into receivership?How much does Prime Trust owe its clients in fiat and crypto?What caused Prime Trust to lose access to its legacy wallets?What actions did Prime Trust take to process withdrawals despite the wallet access issue?What are the potential outcomes for Prime Trust as stated in the filing?

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