Nevada orders Fortress Trust to cease operations, with the company on the brink of bankruptcy and only one million dollars in encryption assets remaining.

On October 24, CoinWorld reported that the Nevada Financial Institutions Division issued a cease-and-desist order to the crypto custodian Fortress Trust (now renamed Elemental Financial Technologies) on October 22, citing severe liquidity issues that prevent it from fulfilling customer withdrawal obligations. Documents show that Fortress owes customers approximately $8 million in fiat and $4 million in crypto assets, but holds less than $200,000 in cash and about $1 million in crypto assets. The company has admitted that it cannot complete a funds reconciliation and has failed to submit financial statements for July to September. Current CEO Anthony Botticella stated that he realized the company was in serious financial crisis only after taking over, with the issues stemming from previous management errors. The company faced a hacker incident in 2023 that led Ripple to terminate its acquisition plans. Previously, Fortress also had its remittance license revoked in Maine due to compliance issues.

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