And on and on it goes. We thought we’d moved on, that we’d left behind the bankruptcies and others decisions judicial which have punctuated the last few months, and finally take advantage of the summer to talk about happy things.
But no. Reality catches up with us by the collar and plunges us back into our daily lives. in the worst post-FTX hours when many crypto companies were feverishly waiting to find out what sauce they were going to be eaten by the US justice system. Today, it’s Prime Trust which is back in the spotlight thanks to a court order from the Nevada which has just decided on its immediate future. Head for Las Vegas to find out more.
Very bad trip for Las Vegas crypto company
Over the past few months, we’ve been telling you about this American cryptocurrency management company, which was in dire financial straits. Burdened with debts to the tune of several tens of millions of dollars, Prime Trust had to go to court for the management of its immediate future.
The July 14th the last, things are speeding up for the Las Vegas which finds itself under the guardianship of a court-appointed administrator. Called receivershipit has a role similar to that of a trustee in a chapter 11 bankruptcy of American law, and he will (temporarily) have the company’s destiny in his own hands.
More specifically, a state court in the District of Nevada who took the decision to hand over the reins of Prime Trust to an outsider who will be the sole decision-maker. The current management team and its interim CEO had requested this solution in an attempt to find a way out of the current crisis. As for Nevada’s financial regulator, it had also supported the request after noting that the group’s financial situation had deteriorated. « significantly deteriorated to a critical level ».
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Prime Trust placed under the control of a receiver
Finally, the Court ruled and rendered the following judgment:
« The Court, having considered the situation as well as the relevant exhibits filed in support of the motion, including the consent of the defendant, finds good cause to grant the motion. »
Consequently, it is a certain John Guedry who finds himself with the onerous task of finding a solution. This former CEO of the Bank of Nevada is going to have to make all the day-to-day decisions with the following objective, which he has outlined to the press local :
« Thoroughly review all of its finances to determine the best option to protect Prime’s customers, either by rehabilitating and returning the business to private management, or by liquidating the business. »
As a reminder, Prime Trust must 85 million in dollars and owns only 3. For cryptos, it’s a little better with 69 million of debts against 68 on the company’s portfolios. The mission looks set to be rather complicated, and liquidation seems to be getting ever closer. However, the court has scheduled a new hearing for August 22nd to determine whether this sequestration should be extended beyond this date.
American justice thus finds itself once again in the position of the justice of the peace having to decide the future of a crypto company. The return to reality is violent for all those companies that had happily surfed on the last bull run and now finds itself unable to repay its creditors. Some would say that it’s healthy to clean up one’s act and that creative destruction is sometimes healthy, but for employees and users alike, this life lesson is hard to swallow. But because it’s summertime and we’re all in need of a little levity, we’re offering you a little blow of Cathie Wood to make the pill go down.
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