The Nevada Department of Business and Industry has announced that crypto custody company Prime Trust is open to client funds and is unable to handle withdrawal requests. The Department announced that the Financial Institutions Division, which oversees state-regulated trust companies, has ordered the Prime Trust to cease operations for violating Nevada regulations. It was stated that the financial condition of the company was very bad and it could go bankrupt. Prime Trust reported that it has been missing more than $12 million in shareholders' shares since March this year. The development came shortly after BitGo announced that it was discontinuing its purchase of Prime Trust. Prime Trust's interim CEO has not commented so far. A spokesperson for the Nevada FID stated that the regulator has prevented Prime Trust from accepting funds from existing and new customers, emphasizing that the aim is to protect the interests of customers.