Prime Trust, a crypto services company, laid off one-third of its employees on Tuesday, according to two people familiar with the situation.

The cuts primarily impacted Prime Trust’s communications and compliance departments, though it was not immediately clear how many people were affected. One observer described the move as a cost-cutting measure.

Prime Trust provides cryptocurrency and fiat payment, custody, and regulatory services to other cryptocurrency companies such as Swan, Abra, and Okcoin.

The layoffs follow a string of public problems for the company.

Prime Trust announced last week that it would cease operations in Texas by January 31 after withdrawing its applications for a money transmitter license (MTL) in the state.

The company declined to comment on why the application was withdrawn at the time, but public records show Prime Trust was fined nearly $30,000 by Texas regulators in 2022 for conducting money transmission activities without a license in the state.

Prime Trust CEO Tom Pageler was replaced in November by Jor Law, the current interim CEO.

A company representative did not immediately respond to a request for comment.