The Nevada Financial Institutions Department (FID) filed a petition with the court, seeking a receiver to take over the day-to-day operations of Prime Trust, a cryptocurrency custodian, and examine all of its financial conditions, either to restore the company and put it under private management, or to liquidate the company to protect Prime customers. Prime Trust's management board has agreed to take over, according to an attachment to the regulator's filing. The regulator said Prime was operating in an unsafe and unsound manner, and that the company had no funds to pay customer deposits or continue cryptocurrency custody services. Prime Trust owes its clients more than $85 million in fiat currency, but has nearly $3 million in cash, the documents show. The company also owes customers more than $69 million in digital currency, but currently owns about $68 million in digital assets. Nevada regulators believe Prime will not be able to meet all withdrawal requests. In addition, the FID said that Prime Trust lost access to customers' old wallets in 2021 and could not access the cryptocurrencies in these old wallets. Foresight News previously reported that Banq, a subsidiary of Prime Trust, filed for bankruptcy in mid-June. Banq said its former executives transferred its assets and trade secrets without authorization.