Nevada regulator files petition to place Prime Trust in receivership

The Block
The Block

27 Jun 2023 5:23 PM

The Nevada Financial Institutions Division has petitioned for an appointment of receivership over crypto custodian Prime Trust with the Eight Judicial District Court of Nevada....

  • The Nevada Financial Institutions Division has filed a petition for receivership over crypto custodian Prime Trust.
  • The regulator alleges that Prime Trust is operating in an unsafe and unsound manner and is insolvent.
  • Prime Trust owes over $85 million in fiat currency to its clients, but has just under $3 million in cash.
  • The company also owes over $69 million in digital currency to its clients, but currently has about $68 million in digital assets.
  • The petition seeks a receiver to take over the day-to-day operations of the company and "thoroughly examine all its finances to determine the best option to protect Prime’s clients, either by rehabilitating and returning the company to private management or by liquidating the company."

The article has a negative sentiment as it discusses the insolvency and unsafe operations of Prime Trust, leading to the Nevada Financial Institutions Division filing for receivership.

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You May Ask

Why did the Nevada Financial Institutions Division file for receivership over Prime Trust?How much does Prime Trust owe in fiat currency to its clients?How much does Prime Trust owe in digital currency to its clients?What is the purpose of the petition for receivership?What is the role of the receiver in this situation?

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