Prime Trust Halts Withdrawals Following Nevada Regulator’s Order

Partner startup Stably has announced that crypto custodian Prime Trust has been issued a directive from the Nevada Department of Business and Industry that requires it to suspend fiat and digital asset deposits and withdrawals.

After an assessment of the company’s financial condition, the regulator determined that Prime Trust was in a critically inadequate state and had violated fiduciary duties, leading to a capital deficit that left the firm unable to fully meet withdrawal requests.

As of the end of March 2023, the shortfall amounted to -$12 million. Prime Trust will have 30 days to contest the order.

In response to the directive, Prime Trust announced that it would suspend new client contracts, in addition to other business expansion efforts, while engaging with the NV FID to determine necessary steps to get back into normal operations.

Additionally, Stably suspended some operations and assured customers that the company is working to conclude new agreements with other organizations for cryptocurrency custody.