Prime Trust Key Partner Stably Has To Stop Some Services

Key Points:

• Payments platform Stably had to suspend some services due to the impact of its regulatory custodian Prime Trust.
• Prime Trust had to suspend deposits and withdrawals due to a request from Nevada regulators.

Payment platform Stably has temporarily halted some operations due to the influence of a close partnership with major crypto custody company Prime Trust.

According to an official announcement from payment platform Stably, some of its services will be suspended due to the influence of its regulatory custodian, Prime Trust, which is in trouble.

According to previous information, Prime Trust recently announced that it had suspended deposits and withdrawals after the project received a request from the Nevada Financial Commission. This crypto custody company has also mailed this notice to its partners.

Prime Trust is a company that provides services for crypto projects. They have served nearly 700 clients in the fintech and crypto sectors. They were recently rumored to be going bankrupt even though it received capital of more than 100 million USD in June last year.

On June 10, TrueUSD (TUSD), the stablecoin recently “favored” by Binance, announced on Twitter that it would suspend the service of issuing TUSD via Prime Trust until further information is available new day. Then, on June 14, Banq, a subsidiary of Prime Trust, filed for bankruptcy protection with the US District Court of Nevada.

Yesterday, Bitgo, the company that previously announced its acquisition of the crypto custody platform yesterday, also announced the cancellation of the acquisition after the platform received a request to cease operations from the Nevada regulator.

The Nevada Financial Institutions Division (FID) has ordered Prime Trust to cease any activity that violates Nevada regulation, claiming that “the company’s overall financial condition has deteriorated significantly” and that the company is operating in substantial deficits and may even be insolvent. FID said the company may be unable to operate reasonably and has breached its fiduciary duty.

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