In accordance with Crypto.News, Nevada regulators have ordered crypto custodian Fortress Trust to cease operations due to signs of insolvency and unsafe business practices. The Financial Institutions Division issued a cease-and-desist order, citing a significant mismatch between assets and liabilities. The move mirrors the 2023 collapse of Prime Trust, also founded by Scott Purcell. Regulators are tightening custody rules, raising pressure on smaller firms to meet new standards. The SEC and New York’s DFS recently updated custody guidance, requiring clearer insolvency protections and disclosures. Smaller custodians may struggle to comply, accelerating industry consolidation.
Nevada Orders Fortress Trust to Halt Operations Amid Insolvency Claims
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