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<p class="is-style-lead">The Nevada Financial Institutions Division has recently lodged a petition for receivership for Prime Trust citing operational instability and insolvency.</p> 
<p>In a move seeking to stabilize its operation, the Nevada Financial Institutions Division has called for the initiation of receivership proceedings for cryptocurrency custodian <a href="https://crypto.news/prime-trust-subsidiary-files-for-bankruptcy-in-the-us/" data-type="URL" data-id="https://crypto.news/prime-trust-subsidiary-files-for-bankruptcy-in-the-us/">Prime Trust</a>. </p> 
<p>The institution’s call for receivership was prompted by concerns over Prime Trust’s financial soundness and current operational state. </p> 
<p>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 <a href="https://fid.nv.gov/uploadedFiles/fidnvgov/content/Opinion/Prime%20Trust%20-%20C%20and%20D%206.21.23.pdf" data-type="URL" data-id="https://fid.nv.gov/uploadedFiles/fidnvgov/content/Opinion/Prime%20Trust%20-%20C%20and%20D%206.21.23.pdf" target="_blank" rel="noreferrer noopener">promulgated</a> on June 21, 2023.</p> 
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   <p lang="en" dir="ltr">FID alleged Prime Trust lost access to legacy wallets in 2021 and used customer assets to buy back crypto<br><br>oh brother <a href="https://t.co/2rrW2jpmDr" target="_blank">https://t.co/2rrW2jpmDr</a> <a href="https://t.co/zjebYPAkcA" target="_blank">pic.twitter.com/zjebYPAkcA</a></p>— db (@tier10k) <a href="https://twitter.com/tier10k/status/1673743351785439251?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 27, 2023</a>
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<p>By seeking the appointment of a receiver, the regulatory body aims to have an overseer step into the operational reigns of Prime Trust. </p> 
<p>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.</p> 
<p> You might also like: <a href="https://crypto.news/bitgo-terminates-plans-to-buy-prime-trust/"> BitGo terminates plans to buy Prime Trust </a> </p> 
<p>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.</p> 
<p>This receivership petition follows an <a href="https://crypto.news/prime-trust-insolvency-fears-nevada-cease-desist-order/" data-type="URL" data-id="https://crypto.news/prime-trust-insolvency-fears-nevada-cease-desist-order/">announcement</a> made last week by the Nevada Financial Institutions Division, indicating that Prime Trust was unable to process all requests for customer withdrawals. </p> 
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<p>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.</p> 
<p> Read more: <a href="https://crypto.news/trueusd-pauses-minting-of-tusd-via-prime-trust-stablecoin-briefly-depegs/"> TrueUSD pauses minting of TUSD via Prime Trust, stablecoin briefly depegs </a> </p>

Nevada regulator petitions for receivership of Prime Trust

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