Nevada court orders Prime Trust into temporary receivership

Nevada courts person ordered Prime Trust, a salient crypto custodian present facing fiscal troubles, into impermanent receivership connected July 18, officials confirmed. The Eighth Judicial District Court of Nevada has approved a petition from the Nevada Financial Institutions Division (NFID) that volition spot Prime Trust into impermanent receivership.

John Guedry, formerly an enforcement astatine the Bank of Nevada and different fiscal institutions, has been appointed arsenic receiver pending imperishable bid from the court. Guedry volition oversee Prime’s regular operations; helium volition besides execute a implicit introspection of the company’s finances and find the champion mode to support Prime Trust’s clients.

The NFID said that it is incapable to supply ineligible counsel oregon proposal to Prime’s customers and advised customers of Prime Trust to interaction John Guedry directly.

Guedry’s receivership volition last, astatine minimum, until a amusement origin proceeding acceptable for August 22, 2023. That proceeding could different impact Prime Trust’s quality to operate.

Prime Trust situation began astir 1 period ago

The NFID initially issued a cease and desist bid to Prime Trust connected June 21, astatine which clip it said that the institution was incapable to fulfill lawsuit withdrawal requests. It besides ordered the institution to halt accepting funds astatine that time.

The NFID past filed a petition to person Prime Trust placed successful receivership connected June 26 owed to insolvency concerns and the company’s evident nonaccomplishment to support a harmless and regulated operational environment, arsenic mandated by NRS 669. That petition came with the consent of Prime Trust LLC, signifying the seriousness of the situation.

Prime Trust’s issues person extended elsewhere successful the crypto industry. Prime Trust subsidiary Banq declared bankruptcy connected Jun 14, portion Stably reported that it would halt definite services linked to Prime Trust connected June 22. BitGo’s planned acquisition of Prime Trust besides failed connected June 22 arsenic BitGo itself terminated the deal.

Previous reports indicated that Prime Trust had a shortage supra $82 million. The institution provided custodial services to organization crypto investors alongside different services.

The station Nevada tribunal orders Prime Trust into impermanent receivership appeared archetypal connected CryptoSlate.