Nevada’s Financial Institutions Division filed to appoint a receiver for crypto custodian on Prime Trust and freeze all of its businesses, the regulator announced on Tuesday.
The move comes mere days after fellow custodian BitGo called off its bid to acquire Prime Trust, and follows a Nevada cease-and-desist order which alleged Prime Trust was near insolvency. Tuesday’s order states that Prime Trust owes its clients north of $85 million in fiat, and has about $3 million in fiat currency on hand. The company owes a further $69.5 million in crypto, and has $68.6 million on hand, the filing said.
Prime Trust requested the receivership, the filing indicated.
“The petition asks the court to appoint a receiver to take over the day-to-day operations of the company and thoroughly examine all its finances to determine the best option to protect Prime’s clients, either by rehabilitating and returning the company to private management or by liquidating the company,” a press release sent by a Nevada FID spokesperson said.
