Nevada Regulators Halt Fortress Trust Operations Amid Looming Insolvency Crisis

Nevada regulators issued a cease-and-desist order against Fortress Trust, citing imminent insolvency and inadequate liquidity to meet customer obligations, raising concerns in the crypto sector.

• On October 22, Nevada regulators issued a Cease and desist order against Fortress Trust, now known as Elemental Financial Technologies Inc., due to impending insolvency.
• The Nevada Financial Institutions Division determined that Fortress Trusts liquidity position was wholly inadequate to meet customer obligations, prompting immediate regulatory action.
• The situation has implications for the broader crypto industry, especially for firms utilizing the Ripple (payment protocol) amid increasing scrutiny from regulators.