Ripple-Affiliated Fortress Trust (Now Elemental Financial Technologies) Faces Nevada Cease-and-Desist Over $12M Fiat and Crypto Shortfall

COINOTAG News reports that the Nevada financial regulator issued a cease-and-desist order to Fortress Trust, a crypto custodian now renamed Elemental Financial Technologies, citing severely insufficient liquidity and an inability to honor withdrawal requests, per Bloomberg.

Court filings show client liabilities topping $12 million, including over $8 million in fiat and $4 million in crypto, with less than $200,000 in cash and roughly $1 million in crypto remaining in accounts.

In 2023, Ripple planned to acquire Fortress Trust but withdrew after a hacking incident caused multimillion-dollar losses, a development that coincided with liquidity and governance concerns facing the custodian.