Prime Trust, the beleaguered crypto custodian recently ordered to cease operations, looks poised to do potentially massive layoffs, according to former employees.
Some have heard up to 75% of jobs could be eliminated. The sources, who requested anonymity, cited what they’ve heard from inside the company.
Prime Trust didn’t immediately respond to CoinDesk’s request for comment on the current size of the company’s workforce or the scope of any layoffs.
The company is contending with profound financial and regulatory challenges. A Nevada court recently put the company into receivership after the state ordered Prime Trust to cease all activities amid a shortfall in customer funds and accusations that it used customer funds to meet withdrawal requests. This happened not long after BitGo terminated a deal to buy the company.
Earlier this year, the company slashed its headcount by one-third, sources told CoinDesk.
LinkedIn data shows Prime Trust employs 224 people, but the real number is probably actually smaller, a source told CoinDesk.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.