BitGo Drops Prime Trust Purchase Amid Customer Funds ‘Shortfall’

The digital-asset firm BitGo Holdings Inc. dropped plans to acquire the parent company of Prime Trust amid allegations the crypto custodian has a shortfall of customer funds.

Summerlin, Nevada-based Prime Trust received a notice Wednesday from the Nevada Financial Institutions Division ordering it to halt all deposits of fiat and digital assets from within the state for custody. The agency alleged Prime Trust had a “shortfall in customer funds” and was unable to meet withdrawal requests. Prime Trust said it will suspend customer withdrawals as it seeks to address the state’s concerns. Stably, a service used to buy and sell ...