The Nevada Financial Institutions Division has recently lodged a petition for receivership for Prime Trust citing operational instability and insolvency.
In a move seeking to stabilize its operation, the Nevada Financial Institutions Division has called for the initiation of receivership proceedings for cryptocurrency custodian Prime Trust.
The institution’s call for receivership was prompted by concerns over Prime Trust’s financial soundness and current operational state.
According to the regulator, the crypto custodian’s mode of operation was found to be precarious and unstable, and the company is identified as insolvent in compliance with the cease-and-desist order promulgated on June 21, 2023.
By seeking the appointment of a receiver, the regulatory body aims to have an overseer step into the operational reigns of Prime Trust.
The receiver would carry out a comprehensive financial analysis of the company’s current status, thus helping determine the most appropriate course of action to safeguard the interests of the Prime Trust’s clientele.
The Nevada Financial Institutions Division elucidated that the appointed receiver’s responsibilities would potentially encompass either rebuilding the company’s financial structure and eventually returning control to private hands or moving towards a total liquidation process for the company.
This receivership petition follows an announcement made last week by the Nevada Financial Institutions Division, indicating that Prime Trust was unable to process all requests for customer withdrawals.
The financial standing of the crypto custodian seems to be in a critical state, and the steps proposed aim at securing the interests of the customers, providing them with as much protection as possible under the current circumstances.
Credit: Source link
Bitcoin 
Ethereum 
Tether 
BNB 
Solana 
USDC 
XRP 
Lido Staked Ether 
Dogecoin 
Toncoin 
Cardano 
Shiba Inu 
Avalanche 
TRON 
Polkadot 
Wrapped Bitcoin 
Bitcoin Cash 
Chainlink 
NEAR Protocol 
Polygon 
Internet Computer 
Litecoin 
LEO Token 
Uniswap 
Dai 
First Digital USD 
Aptos 
Ethereum Classic 
Hedera 
Cosmos Hub 
Cronos 
Stellar 
Filecoin 
Mantle 
Stacks 
OKB 
Immutable 
Render 
XT.com 
Renzo Restaked ETH 
Pepe 
Optimism 
Arbitrum 
Sui 
dogwifhat 
Kaspa 
Bittensor 
VeChain 
Wrapped eETH 
Maker 
