Nevada financial regulator petitions court to place Prime Trust into receivership

Cointelegraph
Cointelegraph

27 Jun 2023 9:07 PM

A petition filed by Nevada’s Financial Institutions Division called for the immediate appointment of a receiver to Prime Trust Technologies based on the risk of “irreparable harm”....

  • Nevada's Financial Institutions Division has filed a petition for the appointment of a receiver for Prime Trust Technologies, including its crypto custodian arm.
  • Prime Trust has agreed to the receivership due to a "substantial deficit between its assets and liabilities".
  • The petition claims that Prime Trust owed more than $85 million to its clients in fiat, but had only roughly $2.9 million as of the filing.
  • The regulator claims that there is a risk of "irreparable harm" to customers, the public, and "confidence in the emerging market of cryptocurrency".
  • BitGo announced on June 22 that it planned to cancel its acquisition of Prime Trust.

The article reports on the legal troubles faced by Prime Trust Technologies, a crypto custodian, and the actions taken by the Nevada regulator to protect customers and the public. The sentiment is negative due to the substantial deficit between Prime Trust's assets and liabilities, the risk of irreparable harm, and the cancellation of BitGo's acquisition.

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You May Ask

What is the reason behind the Nevada regulator's petition for the appointment of a receiver for Prime Trust Technologies?How much did Prime Trust owe to its clients in fiat, and how much did it have as of the filing?What is the risk identified by the regulator in the emerging market of cryptocurrency?What is the significance of BitGo's cancellation of its acquisition of Prime Trust?Who did Prime Trust contract to store all its crypto assets in 2019, and why did it reintroduce legacy wallet forwarding addresses to customers in January 2021?

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