- Department of Business and Industry issued a “cease and desist” order;
- The company has 30 days to challenge it or declare bankruptcy
- Regulator says Prime Trust is insolvent
- Since June 21, the company cannot cover withdrawal requests
A few hours after BitGo abandoned its purchase of Prime Trust, the infrastructure provider received an order from a Nevada-based regulator. The company has suspended operations due to a lack of funds to cover withdrawal requests.
This information was confirmed by the Nevada Department of Business and Industry. And you can read more about the “cease and desist” order here.
According to the regulator, Prime Trust has been unable to fulfill withdrawal requests since June 21. In doing so, the company was assessed here as “critically unsatisfactory” and unable to continue operations.
The order states that Prime Trust willfully breached its fiduciary duties. This is what dictated the regulator’s decision. The company has 30 calendar days to declare bankruptcy or challenge the order in administrative court.. Consequently, the company will be reorganized, sold or liquidated under the auspices of the federal government, as was the case with Signature.
The company will be reorganized, sold or liquidated under the auspices of the federal government.