Crypto custody firm Prime Trust has “a shortfall in customer funds” and was unable to meet all withdrawal requests this month, the Nevada Department of Business and Industry said Thursday. The department’s Financial Institutions Division, which oversees state-regulated trust companies, ordered Prime Trust to cease all activities that violate Nevada regulations, alleging that the company’s “overall financial condition … has considerably deteriorated to a critically deficient level.” Prime Trust is “operating at a substantial deficit” or may even be insolvent, the order said. “On or about June 21, 2023, Respondent was unable to honor customer withdrawals due to a shortfall of customer funds caused by a significant liability on the Respondent’s balance sheet owed to customers,” the order said.
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