Nevada regulators ordered Prime Trust to end operations on Thursday, after the cryptocurrency custodian was unable to satisfy customer withdrawal requests. The decision was announced just hours after rival BitGo announced it was abandoning a takeover of the company.
The state’s Department of Business and Industry said in an order posted on its website that Prime Trust’s financial condition “has considerably deteriorated to a critically deficient level” and that the company was unable to honor withdrawal requests “due to a shortfall of customer funds.” The agency added that Prime Trust “has materially and willfully breached its fiduciary duties to tis customers by failing to safeguard assets under its custody.”
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Alastair Caithness, Ziyen CEO, stated
“Prime Trust being placed in receivership is a sad day. Providing fintech and digital asset products with financial infrastructure, Ziyen Inc. was a former client of Prime Trust who were a pioneer in the digital economy.”