The paperwork pointed towards a debt: a whopping $85 million in traditional currency against a paltry $3 million reserve.
Their crypto assets painted a grim picture too: assets of $68 million against a looming $69 million debt.
Crypto Custodian Prime Trust: A Muddled Mix-up or More?
Diving deeper into the abyss, part of the financial shortfall can be traced back to an almost cinematic turn of events.
Prime Trust, aiming for a fortress-like security, allied with crypto security firm, Fireblocks, back in 2019.
However, leadership tides shifted in 2020, and by 2021, a new captain and crew found themselves locked out of a considerable chunk of their treasure vault.
The state regulator unveiled a perplexing move by Prime Trust: buying more cryptocurrency, but this time, with customer gold, trying to patch up the holes from the inaccessible vaults.
Nevada’s Court Steps In
The Nevada court, watching this high-seas drama unfold, acquiesced to FID’s plea, appointing a guardian over Prime Trust’s dwindling treasures last month.
Guiding Stars for Prime Trust
In this financial tempest, Prime Trust isn’t sailing blind.
