Nevada regulator says Prime Trust’s financials have considerably deteriorated.

Prime Trust, a crypto custodian, has been deemed “critically deficient” in its financial condition and is unable to fulfill customer withdrawal requests, as per a cease and desist order issued by Nevada’s business regulator.

The order, dated June 21, states that Prime Trust’s financial condition has “considerably deteriorated” and the company is now in an “unsafe or unsound condition” to continue its business:

“On or about June 21, 2023, Respondent’s [Prime Trust] was unable to honor customer withdrawals due to a shortfall of customer funds caused by a significant liability on the Respondent’s balance sheet owed to customers.”

The order further alleges that Prime Trust has breached its fiduciary duty to its customers by failing to protect their assets under custody. The regulator also claims that the firm is “unable to meet all customer disbursement requests.”

Prime Trust has 30 days to respond to the cease and desist order and can request an administrative hearing to challenge the order.

Related: TrueUSD assures users it has no exposure to troubled Prime Trust

If Prime Trust fails to contest the order, the cease and desist order will become permanent.

In addition, Banq, the payments subsidiary of Prime Trust, has filed for bankruptcy protection in the United States on June 13. Following this, BitGo, a wallet infrastructure provider and digital asset custodian, announced on June 22 that it has canceled its acquisition of Prime Trust.

Magazine: Cryptocurrency trading addiction — What to look out for and how it is treated

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Binance's Head of Product Leaves Amid Growing Executive Exodus

Mayur Kamat's departure is part of a positive trend that includes the departures of Chief Strategy Officer Patrick Hi...


Over 60 Hong Kong brokerages, sharing the benefits of Bitcoin

Which Hong Kong brokerage firm understands cryptocurrencies the best out of over 60 companies?


Arthur Hayes predicts wealth transfer behind Middle East conflict People will abandon US bonds and flock to Bitcoin

After Biden's speech, Bitcoin and gold are rising against the backdrop of a sharp decline in long-term US Treasury bo...


Commemorating the 15th Anniversary of the Bitcoin White Paper 'Archaeology' How Did I Get My Bitcoin Airdrop in 2011?

On the occasion of the 15th anniversary of the release of the Bitcoin whitepaper, I would like to share a personal jo...


Leveraging billions of dollars of funding How to wield the crypto wedge?

Taking up 1% of the $10 trillion market may seem ambitious, potentially earning you a bonus of $100 billion. However,...