Nevada’s Financial Institutions Division has taken control of crypto firm Prime and placed it into receivership. The division froze the company’s businesses and operations after alleging that Prime Trust had lost access to several legacy crypto wallets and had a significant deficit on its books. Prime Trust, which was previously a financial infrastructure provider for Binance US, owes its clients over $85 million in fiat and $69.5 million in crypto. However, it currently only has $3 million available in fiat and $68 million in crypto assets. This action by the division follows BitGo’s decision to cancel its bid to acquire Prime Trust and a cease-and-desist order filed by the state. The filing also revealed that Prime Trust had been operating with a $12 million equity deficit and had been unable to regain access to its legacy wallets. The company’s financial condition is expected to worsen as customers withdraw their funds. Both Prime Trust and the Financial Institutions Division requested the receivership, and the filing also requested a ban on Prime Trust and its associated individuals from disposing of its assets or conducting transactions on its behalf.
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