Nevada Regulators Shut Down Crypto Custodian Fortress Trust Over Insolvency Concerns
Nevada's Financial Institutions Division has ordered Fortress Trust, now operating as Elemental Financial Technologies Inc., to cease operations due to imminent insolvency. The crypto custodian reportedly holds less than $200,000 in cash and $1 million in digital assets against client liabilities exceeding $12 million.
Current CEO Anthony Botticella revealed the trust's financial troubles stemmed from pre-existing issues prior to his December 2023 appointment. The firm failed to produce basic financial documentation for three consecutive months and admitted inability to process customer withdrawals.
The collapse marks another setback for the crypto custody sector, with Fortress Trust tracing its origins to Scott Purcell, former CEO of the failed Prime Trust. The shutdown comes months after Ripple abandoned acquisition plans for the troubled custodian.
