The regulator for the US state of Nevada said that Prime Trust cannot afford withdrawals.
A statement about Prime Trust came from the regulator of the US state of Nevada. The Nevada Division of Financial Institutions said in a statement yesterday that crypto custodian Prime Trust is unable to handle all customer withdrawals. The regulator stated that BitGo closely monitored the company’s solvency prior to the canceled Prime Trust process.
Nevada Regulator Addresses Prime Trust’s Collapse
The Nevada Division of Financial Institutions responded to questions about Prime Trust via email. The regulator underlined that the Prime Trust is unable to protect the assets in which it is convicted. The Nevada regulator pointed out that the underserved company was unable to cover all withdrawals.
The regulator further disclosed that the Prime Trust violated Nevada trust laws and harmed the trust environment. The Nevada Division of Financial Institutions stated that its top priority is to work for the well-being of Prime Trust clients.
The Nevada Division of Financial Institutions said it sent a notice to the company on June 21. This notice includes a regulatory warning that Prime Trust should stop accepting cryptocurrencies.
Crypto custodian Prime Trust was shaken by the withdrawal of BitGo the other day. BitGo has announced that it is withdrawing from the Prime Trust acquisition process.
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