Nevada regulator says PrimeTrustCo has 'a shortfall in customer funds' and was unable to meet customer withdrawals as recently as this week. nikhileshde reports
Crypto custody firm Prime Trust has"a shortfall in customer funds" and was unable to meet all withdrawal requests this month, the Nevada Department of Business and Industry said Thursday.which violate Nevada regulations, alleging that the company's"overall financial condition ... has considerably deteriorated to a critically deficient level.
Prime Trust may not be able to operate in sound manner if it were to continue, the regulator claimed, going on to say it breached its fiduciary duties. Prime Trust reported more than negative $12 million in stockholders' equity position at the end of March 2023, the order said. Prime Trust can request a hearing within 30 days of the order. If it does not file for one, the cease-and-desist order will be deemed final.BitGo announced it was terminatingA number of companies announced shortly after the deal's cancellation that Prime Trust had halted all fiat deposits in response to Nevada's order, though they did not share the actual details of the order.Adds additional detail.
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