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Prime Trust, a Crypto Custodian, Signals Potential Layoffs for 62 Employees According to Nevada Records

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Sep 20, 2023 at 01:53 pm

In August, Prime Trust, a company specializing in safeguarding cryptocurrencies, commenced bankruptcy proceedings. Recently, the company notified its workforce about the potential dismissal of 62 employees within the next two months. This move comes after a prior substantial reduction in staff. The Nevada Department of Employment, Training & Rehabilitation publicized this information.

The precise proportion of the entire company workforce represented by these 62 positions remains uncertain, given that the current headcount is undisclosed. (As of August 14, the bankruptcy filing indicated that the company had 70 full-time employees and contractors.) Furthermore, it remains unclear to what degree the projected job cuts mentioned in a prior report by Bitsday on August 11 align with this recent announcement.

Despite efforts to reach out to Prime Trust for a statement, no response was received at the time of reporting.

Under the Worker Adjustment and Retraining Notification (WARN) Act, employers are obligated to give their employees a minimum of 60 days' notice in cases of "mass layoffs" or facility closures.

The filing for bankruptcy in August took place approximately two months after Nevada regulators accused Prime Trust of being unable to fulfill customer withdrawal requests. Additionally, the company faced allegations of utilizing customer funds to invest in an unsuccessful stablecoin project named Terra, alongside engaging in other questionable business practices, as detailed in court records.

Bids for the company's assets are slated for submission in the early to mid-October period, in accordance with a court order issued the previous week. The transaction is anticipated to conclude within the 60-day timeframe specified in the WARN notice.

Read more: Briefing on Cryptocurrency Warnings in Hong Kong

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