Prime Trust, a crypto custody firm that filed for bankruptcy in August, has issued a WARN notice to its employees, indicating that it may lay off 62 people within the next two months. This news comes just weeks after the company made significant job cuts, raising concerns about the stability of the firm.
According to a document from Nevada’s Department of Employment, Training & Rehabilitation (DETR), Prime Trust disclosed the possible layoffs on September 14th. The WARN notice, which is required under the Worker Adjustment and Retraining Notification Act, mandates that employers inform their employees of impending “mass layoffs” or plant closings at least 60 days in advance. It is unclear whether the potential job losses reported by CoinDesk in August are reflected in this notice.
The exact percentage of the company’s workforce that the 62 workers represent is unknown, as the current headcount of Prime Trust has not been disclosed. However, a bankruptcy filing from August stated that the company had 70 full-time employees and contractors as of August 14th. This indicates that the layoffs could have a significant impact on Prime Trust’s operations.
Prime Trust filed for bankruptcy following allegations from Nevada regulators that the company was unable to meet its customers’ withdrawal requests. Additionally, it was revealed that Prime Trust had used customer funds to invest in a failed stablecoin project called Terra, among other questionable business practices.
The timing of these layoffs coincides with the ongoing bankruptcy proceedings for Prime Trust. Bids for the company’s assets are due in early to mid-October, according to a court order filed last week. It remains to be seen how these job cuts will affect the potential sale of the company and whether it will impact the preferences of potential buyers.
CoinDesk reached out to Prime Trust for comment but did not receive an immediate response. The future of Prime Trust remains uncertain as it navigates the challenges associated with bankruptcy and the consequences of its past business practices. The next few months will undoubtedly be crucial for the company as it looks to restructure and potentially find a new path forward.