Cryptocurrency custodian Prime Trust has stopped deposits and withdrawals following an order from the Nevada regulator.
Prime Trust, which has rumors of bankruptcy, is its rival. BitGo’s immediately after abandoning the purchase agreement Nevada Division of Financial Institutions (NDFI) stopped the deposit-withdrawal transactions after the order.
BitGo in a recent statement, its rival You have given up on purchasing Prime Trust. had announced.
Order from Nevada regulator
by the Nevada Division of Financial Institutions on June 22 In a statement, Prime Trust’s entire the customer becomes unable to pay the funds reported. regulatory agency 21 June on to Prime Trust more customer And client fund He ordered her not to accept.
NDFI, under Prime’s responsibility, responds to questions on the subject via e-mail. cryptocurrencies And unable to protect fiat currencies stated. The details of the statement were as follows:
Prime has not been able to protect the assets under its custody and cannot afford all client withdrawals. As such, Prime has violated its fiduciary duties to its customers by violating Nevada trust laws.
BitGo, Prime Trust of Nevada regulator that you watched before the dealIt was stated that he sent an order with the cancellation of the agreement.
Prime Trust has stopped withdrawals
Prime Trust, which had to take action after this order, all deposit And stopped withdrawals.
On the other hand, Prime Trust, in a message to its business partner Stably, stated that work continues to address concerns and become active:
Prime Trust continues to work to address concerns and identify next steps to return to business as usual as soon as possible.
Stablecoin issuer Stably stated that they were adversely affected by these developments on the Prime Trust side. stated and consequently some services and had to pause operations. told. The company emphasized that it continues to work to find a new partner that offers crypto custody services.