{"id":81877,"date":"2023-07-19T10:14:52","date_gmt":"2023-07-19T07:14:52","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=81877"},"modified":"2025-09-12T01:41:48","modified_gmt":"2025-09-11T22:41:48","slug":"court-appoints-a-receiver-for-prime-trust","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/court-appoints-a-receiver-for-prime-trust\/","title":{"rendered":"Court appoints a receiver for Prime Trust"},"content":{"rendered":"<p>The District Court of Nevada ordered Prime Trust, the crypto custodian, into receivership and named a receiver \u2014 John Gedri, the president of Bank of Nevada. <a href=\"https:\/\/www.coindesk.com\/business\/2023\/07\/18\/prime-trust-put-into-receivership-charged-with-using-customer-funds-to-buy-crypto\/\">CoinDesk<\/a> reports.<\/p>\n<p>According to a statement from the local Department of Business and Industry, the company&#8217;s overall financial condition had significantly deteriorated to a critically unsatisfactory level. As a result, the firm found itself in an unsafe or insolvent state.<\/p>\n<p>In June, the regulator <a href=\"https:\/\/forklog.com\/en\/news\/prime-trust-freezes-withdrawals-after-nevada-regulator-order\">ordered<\/a> Prime Trust to suspend deposits and withdrawals in fiat and digital assets due to a capital deficiency. <a href=\"https:\/\/forklog.com\/en\/news\/nevada-regulator-seeks-prime-trust-bankruptcy\">petitioned<\/a> the court to bar the crypto custodian from any business operations.<\/p>\n<p>Prime Trust&#8217;s fiat liabilities amount to $85.67 million, while assets at its disposal barely exceed $2.9 million. In cryptocurrency, the firm owes clients $69.5 million but has only $68.65 million on hand.<\/p>\n<p>Prime Trust was also accused of using customer funds to satisfy withdrawal requests from its &#8216;outdated wallets&#8217;.<\/p>\n<p>In addition, the Department of Business and Industry filed an application to acquire the company and freeze all of its operations. The document was filed a few hours after BitGo <a href=\"https:\/\/forklog.com\/en\/news\/bitgo-abandons-bid-to-acquire-prime-trust-a-crypto-custodian\">announced its exit from the deal<\/a> <a href=\"https:\/\/forklog.com\/en\/news\/bitgo-to-acquire-crypto-custodian-prime-trust\">to acquire the crypto custodian<\/a>.<\/p>\n<p>Banq, the payments company linked to Prime Trust, <a href=\"https:\/\/forklog.com\/en\/news\/prime-trusts-payments-unit-files-for-bankruptcy\">filed<\/a> for bankruptcy protection under <a href=\"https:\/\/forklog.com\/en\/news\/why-crypto-firms-opt-for-chapter-11-bankruptcy-under-the-u-s-bankruptcy-code\">Chapter 11 of the US Bankruptcy Code<\/a> in the United States District Court for the District of Nevada.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The District Court of Nevada ordered Prime Trust, the crypto custodian, to enter receivership and named its receiver as John Gedri, president of Bank of Nevada.<\/p>\n","protected":false},"author":1,"featured_media":81878,"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":[1300,1162,2226],"class_list":["post-81877","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-court-cases","tag-prime-trust"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/81877","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=81877"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/81877\/revisions"}],"predecessor-version":[{"id":81879,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/81877\/revisions\/81879"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/81878"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=81877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=81877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=81877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}