Prime Trust, a cryptocurrency custodian, has told its employees that it might need to fire 62 of them in the next two months. This comes shortly after the company let go of many employees.
The information was disclosed by the Department of Employment, Training, and Rehabilitation (DETR) in Nevada in the filing on September 14.
The company went bankrupt in August, and according to its bankruptcy filing, it had 70 full-time employees and contractors. It’s uncertain to what extent the potential job losses mentioned in the article on August 11th are connected to this bankruptcy notice.
Under the Worker Adjustment and Retraining Notification (WARN) Act, employers must inform their employees at least 60 days in advance if there are going to be significant job cuts or if a plant is closing down.
Prime Trust filed for bankruptcy in August due to issues raised by Nevada regulators, who claimed the company couldn’t meet customer withdrawal requests.
Additionally, there were allegations that the company used customer funds for risky investments, such as the failed stablecoin project Terra, and engaged in questionable business practices, as stated in a court filing.
Bids for Prime Trust’s assets are expected to be submitted in early to mid-October, and the sale might be completed within the 60-day timeframe specified by the WARN notice.
Also Read: Prime Trust CEO Reveals $8M Loss In Terra Stablecoin
