Bankrupt Prime Trust Blocked From Accessing $45 Million Worth Of Digital Assets

Bitcoinist
Bitcoinist

29 Jun 2023 1:00 AM

A legacy cryptocurrency wallet associated with Prime Trust has been blocked, and the team cannot access assets worth roughly $45 million....

  • A legacy cryptocurrency wallet associated with Prime Trust has been blocked, and the team cannot access assets worth roughly $45 million.
  • The assets consist mainly of Ethereum, valued at over $44 million, with the remaining assets comprised of USDC stablecoin and USD, along with a small amount of HEX.
  • Nevada's Financial Institutions Division (FID) has taken over Prime Trust and halted operations, seeking a receiver. The company is facing liquidity challenges and owes users significant amounts in both fiat and crypto.
  • Prime Trust previously provided services for top-tier cryptocurrency exchanges and service providers, but events have taken a downturn after a cease-and-desist order from Nevada, alleging technical insolvency and misuse of customer funds.
  • The deficits following the filing can be attributed to Prime Trust's inability to access legacy wallets, with one wallet remaining blocked.

The sentiment of the article is negative, as it highlights the troubles faced by Prime Trust, including the blocking of a legacy wallet and the inability to access assets worth $45 million. It also mentions the company's liquidity challenges, insolvency allegations, and misuse of customer funds.

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You May Ask

What is the value of the assets blocked in the legacy cryptocurrency wallet associated with Prime Trust?Which cryptocurrencies make up the majority of the blocked assets?Why did Nevada's Financial Institutions Division take over Prime Trust and halt its operations?What are the allegations against Prime Trust regarding its insolvency and misuse of customer funds?Why are the deficits following the filing attributed to Prime Trust's inability to access legacy wallets?

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