Prime Trust will have a bankruptcy trustee

The Nevada court demanded that the Prime Trust cryptocurrency custodian start bankruptcy proceedings. They also appointed a manager. The position was taken by John Gedry, president of the Bank of Nevada.

What is known at the moment

The local Department of Business and Industry stated that the financial condition of Prime Trust is now at a critically unsatisfactory level. As a result, the company is either in a risky or insolvent state.

Last month, the regulator required the custodian to suspend the deposit. He also requested a restriction on the withdrawal of assets in fiat and digital currencies, explaining this as a "shortage of funds." Later, the agency sent a petition to the court to prohibit Prime Trust from conducting any operations in the business.

The company's liabilities in fiat funds alone amount to more than $85.5 million. At the same time, it owns a little more than $2.9 million in digital assets, obligations to users of $69.5 million. However, she owns less than $69 million.

The company also received accusations of spending customer funds to satisfy the withdrawal of assets from "old crypto wallets". Note that the company wants to buy out the above Department. He has submitted a corresponding application, and the agency also demands the freezing of the company's subsidiaries.

The GRIN4 ecosystem

We have created a bot to make money on crypto exchanges. You set the settings, and he trades 24/7. Manage all assets from one service: with your own hands or with the help of algorithmic trading. Anonymously. Simply. Stress-free.