Struggling Crypto Custodian Prime Trust Looks Poised for Potentially Massive Layoffs, Sources Say

Nevada regulators recently ordered the crypto company, which BitGo had planned to buy, to cease operations and noted a shortfall in customer funds.

AccessTimeIconAug 11, 2023 at 3:45 p.m. UTC

Prime Trust, the beleaguered crypto custodian recently ordered to cease operations, looks poised to do potentially massive layoffs, according to former employees.

Some have heard up to 75% of jobs could be eliminated. The sources, who requested anonymity, cited what they’ve heard from inside the company.

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  • Prime Trust didn’t immediately respond to CoinDesk’s request for comment on the current size of the company’s workforce or the scope of any layoffs.

    The company is contending with profound financial and regulatory challenges. A Nevada court recently put the company into receivership after the state ordered Prime Trust to cease all activities amid a shortfall in customer funds and accusations that it used customer funds to meet withdrawal requests. This happened not long after BitGo terminated a deal to buy the company.

    Earlier this year, the company slashed its headcount by one-third, sources told CoinDesk.

    LinkedIn data shows Prime Trust employs 224 people, but the real number is probably actually smaller, a source told CoinDesk.

    Edited by Nelson Wang and Nick Baker.

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    Elizabeth Napolitano

    Elizabeth Napolitano was a news reporter at CoinDesk.

    Ian Allison

    Ian Allison is an award-winning senior reporter at CoinDesk. He holds ETH.