BitGo cancels acquisition of Prime Trust due to customer fund shortfall.
Crypto custody firm Prime Trust has been issued a cease-and-desist order by the Nevada Department of Business and Industry's Financial Institutions Division (FID) due to a "shortfall in customer funds" and a "considerably deteriorated" financial condition. The FID alleges that Prime Trust breached its fiduciary duties and failed to safeguard assets under its custody. Prime Trust reported a negative $12 million stockholders' equity position at the end of March 2023. The company can request a hearing within 30 days of the order, or the order will be deemed final.