The Nevada regulator has been forced to put crypto custodian Prime Trust into receivership after filing in June to take over the company and freeze all activities due to its projected insolvency and alleged mismatch of customer funds. Consequently, John Guedry, president of Bank of Nevada, has been appointed as the operator of the company’s operations. Filed with the Nevada Department of Business and Industry Financial Institutions Division, the short report stated that the crypto companies’s finical condition deteriorated to a point of being ‘unsafe or unsound’ to carry out its day-to-day operations. The release also explained that, on top of owing more than $85 million in fiat cash to customers, the company seemed to not have enough liquid reserves to meet prearranged withdrawal requests, instead seemingly withdrawing money from customer accounts.
Worsening the situation further, the complaints that were raised by the regulator included assertions that Prime Trust only had in between $3 million and $68.6 million at their disposal – depending on whether asking for their fiat or crypto reserves respectively. Added to that, the report noted that by this point the company could no longer ‘satisfy requests for withdrawals from its “legacy wallets” ‘, possibly drained therethrough from customers.
