Nevada regulator petitions for receivership of Prime Trust

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.

You might also like: BitGo terminates plans to buy Prime Trust

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.

Read more: TrueUSD pauses minting of TUSD via Prime Trust, stablecoin briefly depegs
Follow Us on Google News

Comments

Post a Comment

Popular posts from this blog

Shiba Inu: Here's How Much SHIB Can Rise in 2025

Image
Shiba Inu (SHIB) has a lot of expectations tied to its protocol. Countless individuals are invested in the project, in the hopes of becoming wealthy. However, is the asset going to deliver again? That remains a question only time will answer. At the moment, experts at Finder have given their opinion on how SHIB may perform till the year 2025. According to a survey, Shiba Inu (SHIB) is anticipated to reach $0.00004930 by the year 2025. The panel included 55 fintech specialists. Source: Finder Among the panelists, some are more optimistic about SHIB than others. According to Alexander Kuptsikevich from FxPro, SHIB could reach upto $0.0001 by 2025. Yet, Kuptsikevich did say that “It is unlikely to roar as it did in 2021.” Nonetheless, he did add that SHIB “can ride the future waves of the crypto market.” Will Shiba Inu actually reach $0.00004930? It should be noted that the survey was conducted in October 2022. Since then, SHIB has unveiled a lot more projects and initiatives that co...
Read more

Twitter thread shows Coinbase’s servers may be compromised

A Coinbase user recently shared a Coinbase-related scam story indicating that the exchange’s servers might be compromised . Jacob Canfield, a YouTube host and bitcoin enthusiast, claimed he received a text message about a changed two-factor authentication (2FA) setting on their Coinbase account. Shortly after, he got three phone calls from an individual claiming to be a Coinbase customer support representative. The calls originated from a San Francisco number, adding to the illusion of legitimacy. Holy shit. I just got attacked with one of the most complex scams in #crypto that I have seen to date. Please read if you use @coinbase. This just happened 15 minutes ago. THIS IS A WARNING FOR ALL COINBASE USERS! There has been some sort of a data breach. First, I… pic.twitter.com/aOVWLpAtY4 — Jacob Canfield (@JacobCanfield) June 13, 2023 During the calls, the impersonator asked whether Canfield was traveling outside the US and whether he had requested changes to the email ...
Read more

Bitcoin skeptic Charles Schwab bank deposits down 30% YoY, while BTC is up 50%

Image
The Charles Schwab Corp. (NYSE: SCHW)  is among the most affected financial firms facing a drop in customer deposits due to the increased interest rate environment in the United States, according to its Q3 2023 report. This presents a real challenge for a company that relies primarily on clients’ uninvested cash to fund its interest-earning businesses. Charles Schwab’s consumer bank deposits tumbled 28% year-over-year (YoY), causing its net interest revenue to drop 23.5% in the third quarter, which also negatively affected its quarterly revenue of $4.61 billion (-16.2% from Q2). A recent post on X (Twitter) by the event-driven trader Gurgavin Chandhoke highlights Charles Schwab as the financial company with more accumulated losses in bank deposits since Q3 2022. BANK DEPOSITS OVER THE LAST 1 YEAR BMO UP 21% AMERICAN EXPRESS 20% SCOTIABANK UP 9% CIBC UP 4% RBC UP 3% JP MORGAN DOWN 1.2% CITI DOWN 2.5% GOLDMAN DOWN 2.5% TD DOWN 2.6% BANK OF AMERICA DOWN 3% WELLS FARGO D...
Read more