Nevada Regulator Proposes to Make Prime Trust Insolvent

The regulator acting as the Department of Business and Industry in the state of Nevada decided to send a petition to the court to prohibit the Prime Trust cryptocurrency custodian from conducting any business operations.

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The department stated that Prime Trust now has an insecure financial condition. Also, it may already be untenable. In addition, the situation with it will only worsen, because users are withdrawing more and more funds from the site.

According to the regulator, the platform had problems after it lost access to the old cryptocurrency wallets on which the users' assets were located. This happened after the site was switched to Fireblocks. This happened when the management of the company was changing.

In the winter of 2021-2022, the company made the purchase of additional cryptocurrencies. This was done to meet the requirements of users regarding the withdrawal of funds. At the same time, she used user assets to carry out the procedures.

The authorities suggested that the recent active withdrawal of funds was due to negative news about Prime Trust. This concerned the bankruptcy of Banq, which was mistakenly recorded in the subsidiaries of the cryptocurrency custodian.

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