Prime Trust has recently informed its workforce of the potential need to lay off 62 employees over the course of the next two months.
This development comes mere weeks after the company had already initiated substantial reductions in its personnel, as reported by the Nevada Department of Employment, Training & Rehabilitation (DETR).
In a document disclosed on 14 September to the DETR, the crypto custody firm formally conveyed the possibility of further layoffs.
It is currently unclear what proportion of Prime Trust’s overall workforce these 62 individuals represent, as the company’s precise headcount remains undisclosed.
The bankruptcy filling indicated a total of 70 full-time employees and contractors as of 14 August.
In accordance with the Worker Adjustment and Retraining Notification (WARN) Act, employers are obligated to provide their employees with at least a 60-day advance notice in cases of “mass layoffs” or facility closures.
Prime Trust had initially filed for bankruptcy in August, approximately two months after regulatory authorities in Nevada had raised concerns about the company’s inability to meet customer withdrawal requests.
The company’s use of customer funds to invest in the troubled stablecoin project Terra, along with other questionable business practices, were detailed in a court filling.
Notably, bids for the acquisition of Prime Trust’s assets are slated to be submitted in early to mid-October, according to a court order filed last week.
The transaction’s closure could potentially fall within the 60-day window specified in the WARN notice.