June 22, 2023
The Nevada Financial Institutions Division
(“NFID”) was actively monitoring the solvency of Prime Trust, LLC (“Prime”) in
anticipation of a potential acquisition or merger. Ultimately, Prime
failed to safeguard assets under its custody and cannot meet all client
withdrawals. As such, Prime has breached its fiduciary duties to its clients,
in violation of Nevada trust laws. NFID’s primary objective is to preserve any
enterprise value remaining in Prime for the benefit of Prime’s clients.
On June 21, 2023, NFID issued a
Cease-and-Desist Order (“C&D”) to Prime to cease and desist from accepting
fiat and cryptocurrency from existing and new clients for custody purposes. The
C&D can be located at NFID’s website at www.fid.nv.gov
under enforcement actions.
About the Nevada
Financial Institutions Division
The mission of the
Financial Institutions Division is to maintain a financial institutions system
for the citizens of Nevada that is safe and sound, protects consumers and
defends the overall public interest, and promotes economic development through
the efficient, effective, and equitable licensing, examination and supervision
of depository, fiduciary, and non-depository financial institutions.
# # #