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Crypto Custodian Prime Trust Faces State Takeover Over $80M Owed to Customers

June 29 (Cointime) - Crypto custodian Prime Trust is facing a takeover by the state of Nevada as it owes customers over $80 million in cash that it cannot repay. The state has filed for receivership and accused Prime Trust of using customer fiat funds to buy crypto to meet withdrawal requests after losing access to certain crypto wallets in 2021.

The allegations have implications for stablecoin TrueUSD, whose issuer initially denied any exposure to Prime Trust. Lawmakers and regulators are closely monitoring stablecoin issues, with a bill addressing this sector of the crypto industry expected to pass through the House soon. Meanwhile, Venezuela has temporarily banned crypto mining, which could have a negative impact on the local crypto industry.

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