Troubled Crypto Custodian Prime Trust Placed In Receivership (2)

The Eighth Judicial District Court of Nevada has ordered Prime Trust LLC into receivership amid allegations the custodian used customer funds to buy cryptocurrencies after losing access to digital wallets containing tens of millions of dollars in assets.

The US federal court appointed receiver will take over the day-to-day operations of the Las Vegas-based company and determine the best option to protect clients, according to a statement Tuesday from the Nevada Financial Institutions Division. John Guedry, the former chief executive of Bank of Nevada, has been appointed the receiver.

Prime Trust once played a significant role in the infrastructure of ...