Prime Trust Facing Massive Layoffs as Regulatory Challenges Mount
Nevada regulators have ordered beleaguered crypto custodian Prime Trust to cease operations due to a shortfall in customer funds. Former employees have revealed that the company is expected to make significant layoffs, with up to 75% of jobs at risk. Sources, who asked to remain anonymous, cited internal information as the basis for these claims. Prime Trust has not yet commented on the size of its workforce or the potential scale of the layoffs. The company is currently facing financial and regulatory difficulties, as it recently entered receivership following the Nevada court’s order to cease all activities. This setback comes after BitGo backed out of a deal to acquire Prime Trust. Earlier this year, the company already reduced its headcount by one-third, according to sources.
Key Points:
- Nevada regulators have ordered Prime Trust to cease operations due to a shortfall in customer funds.
- Former employees claim that Prime Trust is planning massive layoffs, potentially affecting up to 75% of jobs.
- Prime Trust has not responded to requests for comment on the size of its workforce or the extent of the layoffs.
- The company is facing financial and regulatory challenges and recently entered receivership.
- BitGo terminated a deal to acquire Prime Trust, adding to the company’s difficulties.
Hot Take:
The future looks uncertain for Prime Trust as it grapples with regulatory issues and financial instability. The potential mass layoffs further highlight the dire circumstances the company is facing. With Nevada regulators stepping in and BitGo backing out, Prime Trust’s reputation and future prospects are in jeopardy. The crypto custodian will need to navigate these challenges carefully in order to regain trust and stability in the industry.
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