The judge approved the Nevada regulatory agency's bankruptcy takeover request for Prime Trust.
2023-07-19 00:36
The 8th Judicial District Court of Nevada has approved the bankruptcy takeover petition of the cryptocurrency custody firm Prime Trust by state regulators. The company's operations will be taken over by the Nevada Bank Commissioner John Guedry.
According to documents submitted on July 14th, the judge of the 8th Judicial District Court of Nevada stated that the court found sufficient grounds to approve the petition after reviewing the key points and authorities supporting the petition, as well as the relevant evidence, including the defendant's consent.
The judge subsequently ordered Prime Trust to appear in court on August 22nd to explain why the application of the state regulator should not be permanently approved.
The initial petition sought to take over the company's daily operations and thoroughly examine its financial condition to determine the best option to protect Prime Trust clients, either by restoring the company and entrusting it to private management or by liquidating it. (The Block)
According to previous reports, in June of this year, the Nevada Financial Institutions Division (FID) submitted a petition to the 8th Judicial District Court of Nevada, requesting the appointment of a receiver to take over the daily operations of the cryptocurrency custody firm Prime Trust and examine its financial condition, "either by restoring the company and entrusting it to private management, or by liquidating the company to protect Prime Trust clients." According to the attachments to its documents, the board of directors of Prime Trust agreed to the takeover.
FID stated that Prime's operations were unsafe and unsound, with no funds to pay customer deposits and unable to continue cryptocurrency custody services. FID's documents show that Prime Trust lost access to the old wallet as early as 2021 and used customer assets to repurchase cryptocurrencies.
Data shows that Prime Trust owes customers $85.67 million in fiat assets, but only holds $2.904 million. Prime Trust owes customers $69.509 million in digital assets, but only holds $68.648 million.
According to documents submitted on July 14th, the judge of the 8th Judicial District Court of Nevada stated that the court found sufficient grounds to approve the petition after reviewing the key points and authorities supporting the petition, as well as the relevant evidence, including the defendant's consent.
The judge subsequently ordered Prime Trust to appear in court on August 22nd to explain why the application of the state regulator should not be permanently approved.
The initial petition sought to take over the company's daily operations and thoroughly examine its financial condition to determine the best option to protect Prime Trust clients, either by restoring the company and entrusting it to private management or by liquidating it. (The Block)
According to previous reports, in June of this year, the Nevada Financial Institutions Division (FID) submitted a petition to the 8th Judicial District Court of Nevada, requesting the appointment of a receiver to take over the daily operations of the cryptocurrency custody firm Prime Trust and examine its financial condition, "either by restoring the company and entrusting it to private management, or by liquidating the company to protect Prime Trust clients." According to the attachments to its documents, the board of directors of Prime Trust agreed to the takeover.
FID stated that Prime's operations were unsafe and unsound, with no funds to pay customer deposits and unable to continue cryptocurrency custody services. FID's documents show that Prime Trust lost access to the old wallet as early as 2021 and used customer assets to repurchase cryptocurrencies.
Data shows that Prime Trust owes customers $85.67 million in fiat assets, but only holds $2.904 million. Prime Trust owes customers $69.509 million in digital assets, but only holds $68.648 million.
Recommended Articles
Pro
Important News
Download Odaily App
Let Some People Understand Web3.0 First
IOS
Android