Now-bankrupt crypto custodian Prime Trust has notified staff of potential layoffs affecting 62 people inside the subsequent two months, in accordance to Nevada’s Department of Employment, Training & Rehabilitation.
This information comes shortly after the firm made vital workforce reductions, CoinDesk reported on Tuesday, noting that the agency had 70 full-time staff and contractors as of August 14.
Prime Trust’s present headcount is unknown, however it’s possible not more than the 70 folks reported final month.
The new spherical of layoffs due to this fact implies that solely a handful of persons are left on Prime Trust’s payroll to handle the chapter course of.
Liabilities of $100 million to $500 million
Prime Trust filed for Chapter 11 chapter on August 14, saying at the time that it had liabilities of $100 million to $500 million from 25,000 and 50,000 collectors.
The chapter submitting was made after allegations from Nevada regulators that the agency could not meet buyer withdrawal requests.
At the time, the issues for Prime Trust have been mentioned to have begun when the firm reintroduced “legacy wallets” to prospects, solely to discover out that it could not entry them, together with the cryptocurrencies they held.
To meet withdrawal calls for in the face of the state of affairs, Prime Trust resorted to utilizing buyer funds to purchase crypto, which may then be withdrawn.
Additionally, Prime Trust CEO Jor Law has admitted that the agency misplaced some $8 million in the collapse of Terra community’s terraUSD algorithmic stablecoin.
As a outcome, the firm collected substantial money owed in each fiat and cryptocurrencies.
Bids for property due in October
Bids for Prime Trust’s property are due in early to mid-October, with the transaction probably closing inside the 60-day discover interval required by the Worker Adjustment and Retraining Notification (WARN) Act.
This act mandates that employers inform their staff of mass layoffs or plant closings a minimum of 60 days prematurely.
