for Prime Trust due to the risk of “irreparable harm” to users, the public and “confidence in the emerging market of cryptocurrency.”A June filing reported Prime Trust owed more than $85 million in fiat and $69.5 million in crypto to its clients. The firm reportedly only held roughly $2.9 million in fiat and $68.6 million in crypto. Nevada’s Financial Institutions Division hadin June to place the firm into receivership based in part on a “substantial deficit between its assets and liabilities.
The collapse of Terra in 2022 was considered by many to be one of the major precipitating events leading to a major crypto market crash. Several firms collapsed or filed for bankruptcy that year, including FTX, BlockFi, Celsius Network and Voyager Digital. Terraform Labs founder is currently serving a four-month prison sentence in Montenegro for using falsified travel documents but could face prosecution in the U.S. and South Korea in the future.