The Eighth Judicial District Court of Nevada has granted a petition from the state’s Financial Institutions Division (NFID) placing crypto custodian Prime Trust into receivership, pending a hearing to show cause.
In a July 14 filing, the Nevada court ordered the appointment of a receiver for Prime Trust following a June 26 petition from the state financial regulator. Prime Trust will have an opportunity to show cause why the petition should not be permanently granted in an Aug. 22 hearing.
“The court appointed receiver will take over the day-to-day operations of the company to determine the best option to protect Prime’s clients,” said the NFID.
The Eighth Judicial District Court of Nevada has ordered Prime Trust LLC into temporary receivership pending an August order to show cause hearing. NFID has modified its Order to Cease and Desist. Read both here: https://t.co/buQKb9PNWepic.twitter.com/nXBn0xB5jH
— Nevada Department of Business & Industry (@NevadaDBI) July 18, 2023
The order requires Prime Trust’s employees and executives to largely not take any actions interfering with the court’s decision. According to court filings, Prime Trust agreed to the petition for receivership with the Financial Institutions Division based on the “substantial deficit between its assets and liabilities.”
At the time, the Nevada financial regulator called for the immediate appointment of a receiver due to the risk of “irreparable harm” to users, the public and “confidence in the emerging market of cryptocurrency.” The Financial Institutions Division said Prime Trust was “unable to honor customer withdrawals” as part of a June 21 cease-and-desist order.
According to the June 26 petition, Prime Trust owed more than $85 million in fiat and $69.5 million in crypto to its clients. However, the firm reportedly only held roughly $2.9 million in fiat and $68.6 million in crypto.
Prior to Prime Trust’s financial woes, wallet infrastructure provider and digital asset custodian BitGo had been considering an acquisition of the firm. The deal was officially called off by BitGo on June 22, roughly one day after the NFID issued its cease-and-desist order.
Labour will eliminate unauthorised sewage spillages in 10 years, the environment secretary has told Sky News.
Steve Reed also pledged to halve sewage pollution from water companies by 2030 as he announced £104 billion of private investment to help the government do that.
“Over a decade of national renewal, we’ll be able to eliminate unauthorised sewage spillages,” he said.
“But you have to have staging posts along the way, cutting it in half in five years is a dramatic improvement to the problem getting worse and worse and worse every single year.”
He said the water sector is “absolutely broken” and promised to rebuild it and reform it from “top to bottom”.
His earlier pledge to halve sewage pollution from water companies by 2030 is linked to 2024 levels.
The government said it is the first time ministers have set a clear target to reduce sewage pollution and is part of its efforts to respond to record sewage spills and rising water bills.
Ministers are also aiming to cut phosphorus – which causes harmful algae blooms – in half by 2028.
Image: Environment Secretary Steve Reed. File pic: PA
Mr Reed said families had watched rivers, coastlines and lakes “suffer from record levels of pollution”.
“My pledge to you: the government will halve sewage pollution from water companies by the end of the decade,” he added.
Addressing suggestions wealthier families would be charged more for their water, Mr Reed said there are already “social tariffs” and he does not think more needs to be done, as he pointed out there is help for those struggling to pay water bills.
The announcement comes ahead of the publication of the Independent Water Commission’s landmark review into the sector on Monday morning.
The commission was established by the UK and Welsh governments as part of their joint response to failures in the industry, but ministers have already said they’ll stop short of nationalising water companies.
Mr Reed said he is eagerly awaiting the report’s publication and said he would wait to see what author Sir John Cunliffe says about Ofwat, the water regulator, following suggestions the government is considering scrapping it.
On Friday, the Environment Agency published data which showed serious pollution incidents caused by water firms increased by 60% in England last year, compared with 2023.
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Why sewage outflows are discharging into rivers
Meanwhile, the watchdog has received a record £189m to support hundreds of enforcement officers for inspections and prosecutions.
“One of the largest infrastructure projects in England’s history will clean up our rivers, lakes and seas for good,” Mr Reed said.
But the Conservatives have accused the Labour government of having so far “simply copied previous Conservative government policy”.
“Labour’s water plans must also include credible proposals to improve the water system’s resilience to droughts, without placing an additional burden on bill payers and taxpayers,” shadow environment secretary Victoria Atkins added.
The Rivers Trust says sewage and wastewater discharges have taken place over the weekend, amid thunderstorms in parts of the UK.
Discharges take place to prevent the system from becoming overwhelmed, with storm overflows used to release extra wastewater and rainwater into rivers and seas.
Water company Southern Water said storm releases are part of the way sewage and drainage systems across the world protect homes, schools and hospitals from flooding.
Circle’s Dante Disparte says the GENIUS Act ensures tech giants and banks can’t dominate the stablecoin market without facing strict structural and regulatory hurdles.