The Nevada Financial Institutions Division filed a court petition to place Prime Trust (a provider of financial infrastructure for fintech and crypto firms) in receivership due to operating in an “unsafe and unsound manner.”
Prime Trust was once a leading participant in the digital asset sector, holding funds on behalf of fallen giants such as FTX and Celsius Network.
“With consideration of the above, Prime is in an unsafe financial condition and/or is insolvent. Additionally, PRIME’s condition will only progressively worsen as customers continue to withdraw from Prime,” the agency alleged.
“After considerable effort and work to find a path forward with Prime Trust, BitGo has made the hard decision to terminate the acquisition of Prime Trust. This decision was not made lightly, and BitGo remains committed to our mission to deliver trust in digital assets,” BitGo stated.