PANews reported on October 24 that according to Bloomberg, the Nevada Department of Financial Institutions issued a cease-and-desist order to the crypto custodian Fortress Trust (now renamed Elemental Financial Technologies) on October 22, stating that it was severely lacking in liquidity and unable to fulfill its customer withdrawal obligations.
Documents reveal that Fortress owes clients approximately $8 million in fiat and $4 million in crypto assets, while holding less than $200,000 in cash and approximately $1 million in crypto assets. The company has acknowledged its inability to complete fund reconciliation and failed to submit financial statements for July through September. Current CEO Anthony Botticella stated that upon taking over, he discovered the company was in serious financial distress, stemming from prior management errors.
The company was hacked in 2023, causing Ripple to terminate its acquisition plan . Previously, Fortress had its remittance license revoked in Maine due to compliance issues.
