Nevada FID Files Petition To Take Control Of Troubled Prime Trust
Nevada FID has taken action against Prime Trust, LLC, a financial institution that specializes in custody services for digital assets. ...
- The Nevada Department of Business and Industry’s Financial Institutions Division (FID) has filed a petition to place Prime Trust, LLC into receivership due to alleged violations of Nevada regulations and a critically deficient level of customer funds.
- Prime Trust is accused of using customer assets to buy back crypto and reportedly owes customers $85,670,000 in fiat currency but only has $2,904,000, and owes $69,509,000 in digital currency but only has $68,648,000.
- The receivership could lead to delays and disruptions in accessing customer accounts and assets held by the firm, and customers may face the risk of loss if the firm’s assets are insufficient to cover its liabilities.
- 88% of the digital currency held by Prime Trust is AUDIO, the native token of the Audius music streaming platform, which could result in significant losses for AUDIO investors.
The article has a negative sentiment as it reports on the alleged violations and critically deficient level of customer funds of Prime Trust, which has led to a petition for receivership. It also highlights the potential risks and losses that customers and investors may face due to the receivership, particularly for those holding AUDIO.