Nevada financial regulator petitions court to place Prime Trust into receivership
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.