Nevada halts operations of crypto custodian Fortress Trust, citing imminent bankruptcy

ChainCatcher reported that Nevada regulators issued a cease and desist order to cryptocurrency custody company Fortress Trust (now renamed Elemental Financial Technologies Inc.) on October 22.

According to court documents, the company is currently on the verge of bankruptcy and faces a significant mismatch between assets and liabilities. Regulators explicitly stated in the order that Fortress's liquidity position is "completely insufficient to meet customer obligations."