{"id":80869,"date":"2023-06-28T10:38:46","date_gmt":"2023-06-28T07:38:46","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=80869"},"modified":"2025-09-11T19:35:53","modified_gmt":"2025-09-11T16:35:53","slug":"nevada-regulator-seeks-prime-trust-bankruptcy","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/nevada-regulator-seeks-prime-trust-bankruptcy\/","title":{"rendered":"Nevada Regulator Seeks Prime Trust Bankruptcy"},"content":{"rendered":"<p>The Nevada Department of Business and Industry filed in court a <a href=\"https:\/\/www.docdroid.net\/Q5WNMMS\/prime-core-technologies-et-al-petition-pdf\">\u043f\u0435\u0442\u0438\u0446\u0438\u0435\u0439<\/a> to bar Prime Trust, the crypto custodian, from conducting any business operations and to appoint a bankruptcy trustee for the company.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cPrime is in an unsafe financial condition and\/or insolvent. Moreover, the company&#8217;s condition is likely to deteriorate further as clients continue to withdraw funds,\u201d the statement said.<\/p>\n<\/blockquote>\n<p>According to the regulator, the company&#8217;s problems stem from losing access to old crypto wallets containing client funds after switching to the Fireblocks platform. This occurred during Prime Trust&#8217;s leadership change.<\/p>\n<p>From December 2021 to March 2022, the company purchased additional digital assets to satisfy withdrawal requests. It used client funds to do so.<\/p>\n<p>According to authorities, the recent surge in asset withdrawals by Prime Trust users is linked to negative news about the company, including <a href=\"https:\/\/forklog.com\/en\/news\/prime-trusts-payments-unit-files-for-bankruptcy\">Banq bankruptcy<\/a>, which had been erroneously listed as a subsidiary of the crypto custodian.<\/p>\n<p>Prime Trust&#8217;s fiat liabilities amount to $85.67 million, while assets at hand barely exceed $2.9 million. In digital assets, the firm owes clients $69.5 million but holds only $68.65 million.<\/p>\n<p>The department urged the court to immediately bar management and employees from any use of corporate funds and disposition of assets. An appointed bankruptcy trustee will oversee the wind-down or reorganization of the business.<\/p>\n<p>Earlier the agency <a href=\"https:\/\/forklog.com\/en\/news\/prime-trust-freezes-withdrawals-after-nevada-regulator-order\">ordered<\/a> Prime Trust to freeze deposits and withdrawals of assets. <\/p>\n<p>Earlier in January, the press reported <a href=\"https:\/\/forklog.com\/en\/news\/media-reports-indicate-prime-trust-cuts-a-third-of-its-staff\">layoffs<\/a> at the company. In June, BitGo decided <a href=\"https:\/\/forklog.com\/en\/news\/bitgo-abandons-bid-to-acquire-prime-trust-a-crypto-custodian\">to exit the deal<\/a> to <a href=\"https:\/\/forklog.com\/en\/news\/bitgo-to-acquire-crypto-custodian-prime-trust\">acquire the crypto custodian<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Nevada Department of Business and Industry filed in court a petition to bar Prime Trust, the crypto custodian, from any business operations and appoint a bankruptcy trustee for the company.<\/p>\n","protected":false},"author":1,"featured_media":80870,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,83,1162,2226],"class_list":["post-80869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-business","tag-court-cases","tag-prime-trust"],"aioseo_notices":[],"amp_enabled":true,"views":"17","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/80869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=80869"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/80869\/revisions"}],"predecessor-version":[{"id":80871,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/80869\/revisions\/80871"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/80870"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=80869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=80869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=80869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}