Crypto custodian Prime Trust taken into external administration due to lack of funds
Bank of Nevada President John Guedry will take over management of the platform
19.07.2023 - 09:45
811
2 min
0
The company is in an “unsafe or unsound condition” to conduct business, a filing with Nevada’s Department of Business and Industry Financial Institutions Division stated.
Crypto custodian Prime Trust has been ordered by the Eighth Judicial District Court of Nevada, where the company has its headquarters, to be put into receivership after the state ordered the company to cease all activities amid a shortfall in customer funds and accusations that it used customer funds to meet withdrawal requests.
According to the filing with Nevada’s Department of Business and Industry Financial Institutions Division, Prime Trust’s overall financial condition has been “considerably deteriorated to a critically deficient level” which leaves the company in an “unsafe or unsound condition to transact business.”
The company’s operations will be taken over by John Guedry, president of Bank of Nevada, the filing stated.
The Nevada regulator announced in June that it had filed to take over the company and freeze all of its businesses after it alleged Prime Trust of near insolvency. The order came hours after fellow crypto custodian BitGo terminated its acquisition of the company.
The request for receivership stated that Prime Trust owed its clients north of $85 million in fiat, and only had about $3 million in fiat currency on hand. The company owed a further $69.5 million in crypto to customers, and had $68.6 million in crypto on hand, the filing said.
The filing also accused Prime Trust of using money from its customer accounts to satisfy requests for withdrawals from its “legacy wallets.”
This material is taken from the website https://www.coindesk.com.
Useful material?
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024
Technologies
The company also unveiled its own blockchain adoption index
Nov 11, 2024