Nevada Orders Fortress Trust to Halt Operations Amid Insolvency Claims
Nevada regulators have mandated Fortress Trust to cease operations following revelations of insolvency risks and unsafe business practices. The state's Financial Institutions Division issued a cease-and-desist order, citing a significant asset-liability mismatch that signals imminent collapse.
The action mirrors the 2023 collapse of Prime Trust, which shared the same founder, Scott Purcell. Fortress Trust, serving over 250,000 clients, had previously drawn acquisition interest from Ripple before a $15 million security breach derailed the deal.
U.S. regulators are intensifying scrutiny of digital asset custodians to mitigate systemic risks. This crackdown disproportionately pressures smaller firms, as seen in Nevada's parallel actions against Prime Trust and now Fortress Trust.
