Prime Trust, a crypto custody firm that filed for bankruptcy in August, has notified its employees that it may lay off 62 people within the next two months, according to Nevada’s Department of Employment, Training & Rehabilitation (DETR). This comes just weeks after the company made significant cuts to its workforce. The possible layoffs were disclosed to the DETR on September 14, as documented by the agency. CoinDesk had previously reported, citing sources familiar with the matter, that massive layoffs were imminent. The exact percentage of the company’s workforce represented by the 62 workers is unclear, as the current headcount is unknown. However, a bankruptcy filing from August stated that the company had 70 full-time employees and contractors as of August 14. It is also uncertain to what extent the potential job losses mentioned in CoinDesk’s August 11 story are reflected in this recent notice. CoinDesk reached out to Prime Trust for comment, but the company was not immediately available to respond.
Under the Worker Adjustment and Retraining Notification (WARN) Act, employers are required to inform their employees of “mass layoffs” or plant closings at least 60 days in advance. Prime Trust filed for bankruptcy in August, approximately two months after Nevada regulators claimed that the company was unable to fulfill its customers’ withdrawal requests. Additionally, a court filing revealed that the company used customer funds to invest in the failed stablecoin project Terra, along with engaging in other questionable business practices. Last week, a court order stated that bids for Prime Trust’s assets are due in early to mid-October, and the transaction may be finalized within the 60-day window created by the WARN notice.
In conclusion, Prime Trust, the crypto custody firm that recently filed for bankruptcy, has notified its employees of possible layoffs. The exact number of employees affected and the reasons behind these layoffs remain unclear. Prime Trust’s troubled financial situation, including allegations of using customer funds for failed investments and engaging in dubious business practices, has led to its current state. The company’s assets are now up for bidding, and the transaction may be completed within the 60-day window specified by the WARN notice.