Troubled digital-asset custodian Fortress Trust — more recently known as Elemental Financial Technologies Inc. — is on the verge of insolvency and facing a significant mismatch between assets and liabilities, according to a court filing.
Regulators in Nevada issued a cease-and-desist order dated Oct. 22 against the custodian, saying that Fortress’ liquidity position is “wholly inadequate to meet customer obligations.”
The state’s Financial Institutions Division found that Fortress owed millions to clients, according to the order. The firm admitted it couldn’t meet customer withdrawals and failed to produce basic financial documentation, including account reconciliations and recent monthly statements. ...
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