Nevada Seeks Receivership for Crypto Custodian After Millions Are Lost
- State says Prime Trust owes $85.67 million in cash to clients
- Petition notes that Prime Trust only has $2.9 million in cash
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Nevada has asked a federal court to appoint a receiver for Prime Trust, alleging that the custodian used customer funds to buy cryptocurrencies after losing access to digital wallets containing tens of millions of dollars in assets.
The 30-page receivership petition filed Monday demands an immediate impounding of all assets of Las Vegas-based Prime Trust, as well as its documents and records. It also asks the court to enjoin Prime, including its officers and agents, from touching any of the company’s funds. The Nevada Financial Institutions Division had ordered Prime Trust to halt all deposits of fiat and digital assets from within the state of custody. Prime Trust didn’t return requests for comment.