Prime Trust in Crisis: Regulator Moves to Shut Down Crypto Custodian Amid Insolvency and Accessibility Issues

By Benito Cormi Jun 28, 202364Views

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Nevada’s financial regulator has raised concerns about the financial stability of crypto custodian Prime Trust. The regulator revealed that Prime Trust is facing insolvency and is unable to meet customer withdrawal requests. As a result, Prime Trust has suspended both deposits and withdrawals. The regulator is now seeking to place Prime Trust into receivership, impounding all of its assets and appointing a receiver to oversee operations. The filing highlights that in 2019, the company enlisted the services of Fireblocks to safeguard assets, but in December 2021, Prime Trust found itself unable to access legacy wallets and the digital currency they contained. Unable to regain access to these wallets, Prime Trust allegedly used customer funds to fulfill withdrawals. The court filing discloses that Prime Trust owes $85,670,000 in fiat currency to clients but only has $2,904,000, and owes $69,509,000 in digital currency but only has $68,648,000.

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Benito Cormi

Benito Cormi, the brilliant crypto analyst who has made waves in the world of cryptocurrency. With his razor-sharp analytical skills and deep understanding of the digital asset landscape, Benito has become a trusted figure in the industry and remains at the forefront, tirelessly researching and analyzing market trends to help individuals and businesses make informed decisions in this dynamic landscape.

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