Prime Trust Faces Closure as Nevada Regulators Take Action – Another Bear Market Victim?

Crypto News
Crypto News

28 Jun 2023 7:00 PM

Crypto custodian Prime Trust is facing closure as Nevada regulators move to shut down the troubled company....

  • Crypto custodian Prime Trust is facing closure as Nevada regulators move to shut down the company due to its unsafe financial condition and debts owed to customers.
  • The company reintroduced "legacy wallets" but couldn't access them, leading to the use of customer funds to buy crypto to meet withdrawal demands.
  • Prime Trust now owes over $85 million in fiat debts and approximately $69.5 million in crypto debts.
  • The regulator expects the firm's financial situation to deteriorate further as more customers demand withdrawals.
  • Prime Trust has faced other setbacks, including one of its subsidiaries filing for bankruptcy and legal troubles for a crypto investment company it acted as custodian for.

The sentiment of the article is negative, as it discusses the imminent closure of Prime Trust and its financial troubles.

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You May Ask

Why is Prime Trust facing closure?How did Prime Trust accumulate substantial debts?What is the current financial situation of Prime Trust?What other setbacks has Prime Trust faced?What action did Texas regulators take against a crypto investment company associated with Prime Trust?

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