Nevada regulator files petition to place Prime Trust in receivership
The Nevada Financial Institutions Division has petitioned for an appointment of receivership over crypto custodian Prime Trust with the Eight Judicial District Court of Nevada, the regulator said Tuesday in a statement.
“This action resulted from the Division’s determination that Prime is operating in an unsafe and unsound manner and is insolvent as specified in the Cease-and-Desist Order issued on June 21, 2023,” the regulator said.
The petition seeks 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.”
The Nevada Financial Institutions Division said last week that the company could not meet all customer withdrawals.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Go to Source
Author: Nathan Crooks and Sarah Wynn
