Cryptocurrency custody company Prime Trust has been ordered to stop all actions that are against Nevada laws by the Nevada Department of Business and Industry. A critically inadequate financial situation was used as justification by the Department’s Financial Institutions Division (FID) to force Prime Trust to stop any actions that violate Nevada laws. According to the ruling, Prime Trust has a large deficit and may perhaps be insolvent. According to the decision, Prime Trust failed to protect the funds in its care and is unable to accommodate all consumer withdrawals. According to the regulator, Prime Trust would be in violation of its fiduciary obligations if it continued to operate in a sound manner. At the end of March 2023, Prime Trust reported a shareholder equity position that was over $12 million in the negative. A few hours after BitGo announced that it may buy Prime Trust, the Nevada regulator posted the cease-and-desist order on its website. In preparation for a prospective purchase or merger, the Nevada Financial Institutions Division (NFID) was cautiously monitoring Prime Trust’s solvency.
The Winklevoss twins created Gemini, a cryptocurrency exchange, and they just revealed the UK extension of its Ethereum staking programme. Gemini Staking Pro enables organisations and wealthy people to sign up as Ethereum validators by securing at least 32 ETH, which is equivalent to almost $60,000 at the time of writing. The service is presently offered through the Gemini online interface and is provided by Gemini Trust Company. The sole staking product offered in the UK is Gemini Staking Pro, and the platform is not subject to UK Financial Conduct Authority regulation. The platform will compensate stakers for the penalties associated with staking. Gemini also intends to raise the maximum amount of Ether needed to qualify as a validator from 32 ETH to as much as 2,048 ETH, which at the time of writing is equivalent to almost $3.9 million. The U.S. Securities and Exchange Commission has filed a complaint against Gemini because it thinks Gemini offered unregistered securities as part of its lending platform, Gemini Earn, in violation of securities laws.