A cryptocurrency wallet associated with Prime Trust has been locked, preventing the team from accessing approximately $45 million in assets, according to Arkham Intelligence data dated June 28. According to the report, the majority of the assets consist of Ethereum, which is worth more than $44 million at current rates. The remaining assets consist of USDC stablecoin and US dollar with a small amount of HEX.
The move comes less than 48 hours after a lawsuit was filed seeking to ban the Prime Trust team or its employees from accessing legacy wallets. The custodian of cryptocurrencies and fiat currencies is facing legal proceedings, and regulators in Nevada are taking action to prevent the illegal transfer of user funds in violation of a court order.
Problems with Prime Trust
On June 27, Nevada’s Financial Institutions Division (FID) acquired Prime Trust and suspended operations. It was also reported that the regulator is actively looking for a recipient. Further records show that Prime Trust is facing liquidity problems.
The data shows that although the custodian owes users more than $85 million, they only have $3 million. At the same time, the company owed users $69.5 million in cryptocurrency and owned $68.6 million worth of crypto assets by the time it filed for ownership.
At one point, Prime Trust provided services to top tier cryptocurrency exchanges and service providers including Binance, USA, and FTX.