The Nevada Department of Business and Industry’s Financial Institutions Division (FID) has taken action against Prime Trust, LLC, a US-based financial institution that specializes in custody and settlement services for digital assets. The FID has alleged that Prime Trust has violated Nevada regulations and has a shortfall in customer funds, which has reached a critically deficient level. As a result, the FID has filed a petition to place Prime Trust into receivership, where a court-appointed receiver will take control of the company’s assets and operations to protect the interests of creditors and stakeholders. The allegations against Prime Trust include the loss of access to legacy wallets in 2021 and the use of customer assets to buy back crypto. The receivership of Prime Trust could have significant implications for its customers, potentially leading to delays and disruptions in accessing their accounts and assets. Customers also face the risk of loss if the firm’s assets are insufficient to cover its liabilities. The petition will be subject to a hearing to determine if the firm should be placed into receivership. Additionally, the news of Prime Trust’s receivership filing has raised concerns among investors in AUDIO, as 88% of the digital currency held by Prime Trust is AUDIO. The receivership process could result in significant losses for those holding the token, especially given the recent volatility in the digital asset markets. At the time of writing, the value of AUDIO stands at $0.1853, with a 1.7% decrease in value over the last 24 hours.
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