Prime Trust, the crypto custody firm that filed for bankruptcy in August, has informed its workforce of a possible layoff affecting 62 employees in the coming two months, as revealed by documents from Nevada’s Department of Employment, Training & Rehabilitation, media reports said.
This notification, dated September 14, marks the second round of significant workforce adjustments, with the company having recently undergone substantial workforce reductions. CoinDesk had reported about impending massive layoffs a month earlier, and this new development appears to confirm those concerns.
The exact proportion of the total workforce represented by these 62 employees is uncertain, as the company’s current headcount remains undisclosed. According to a bankruptcy filing, the company had 70 full-time employees and contractors as of August 14.
As per the Worker Adjustment and Retraining Notification (WARN) Act, employers are obligated to provide their employees with at least 60 days’ advance notice in cases of “mass layoffs” or plant closures.
Prime Trust’s bankruptcy filing in August followed allegations by Nevada regulators that the company had failed to meet its customers’ withdrawal requests and had also invested customer funds in a failed stablecoin project called Terra, among other questionable business practices, as stated in a court filing.
The bidding process for Prime Trust’s assets is set to conclude in early to mid-October, according to a court order issued last week. This timeline aligns with the 60-day window established by the WARN notice, suggesting that the transaction may be completed within that timeframe.
