- Cryptocurrency custodian Prime Trust suspended withdrawals and deposits earlier today.
- The company was suspended after rival custodian BitGo terminated a deal to acquire the company.
- The Nevada Department of Financial Institutions issued an order to Prime Trust directing it to suspend operations.
- BitGo reached a preliminary agreement to acquire a rival custody firm earlier this month.
Cryptocurrency custody firm Prime Trust has suspended withdrawals and deposits on its platform. The news comes just hours after a deal to be acquired by rival custody firm BitGo collapsed earlier today. BitGo announced earlier today that after extensive efforts and efforts to find a way to cooperate with the cryptocurrency custodian, the company has terminated the acquisition transaction.
Nevada regulator directs Prime Trust to suspend operations
according to a Press release Initiated by Stable, one of Prime Trust’s major custody clients, the Nevada Department of Financial Institutions issued an order to the cryptocurrency custody firm, which subsequently ceased all custody deposits of fiat and digital assets. The custodian also halted all fiat and digital asset withdrawals. Following the order, the company issued an advisory to all clients to stop sending custodial assets to cryptocurrency custodians.
Prime Trust is actively working with NV FID to determine next steps to correct any issues and resume normal business as soon as possible. We apologize for the inconvenience and ask for your patience while we work with regulators to provide more clarification on next steps. “
Trouble with Prime Trust has created major problems for Stable. The company had to stop registrations, withdrawals and deposits for Stable Ramp and Stable Prime.The latest development comes two weeks after BitGo launched Announce A preliminary agreement was reached to acquire Prime Trust for an undisclosed sum. The custodian company’s Nevada trust company is poised to join BitGo’s existing global network of regulated trust companies in multiple jurisdictions, including Germany and Switzerland. Through the deal, the ratio of the infrastructure of the cryptocurrency custodian to BitGo’s services will be more than 1:1.