In 2023, news surfaced via Bitcoin.com News that Prime Trust had failed after supposedly losing access to a wallet that held customer funds. Around the same time, the founder and former CEO of Prime Trust founded Fortress Trust, which later rebranded as Elemental Financial Technologies.

Regulatory Intervention in Nevada

Recently, a filing published by the Nevada Financial Institutions Division (FID) and first reported by DL News reveals that on or about October 7, 2025, a representative of Fortress admitted the firm was on the verge of insolvency and could no longer continue operations or satisfy customer withdrawals.

The FID mandated the company to “cease and desist from any and all activities.”

Financial Condition & Liabilities

The regulatory filing shows the company’s liabilities to clients substantially exceeded its available reserves—evidence of a serious asset-to-liability mismatch.

Specifically, the FID stated the firm’s “liquidity position is wholly inadequate to meet customer obligations.” It also noted Fortress failed to provide regulators with “complete financial records.”

Nevada regulators described Fortress’s financial status as “considerably deteriorated to a critically deficient level.” They concluded that “the respondent is now in a position where it is in an unsafe or unsound condition to transact business.”

What It Means for Amid Customers & the Custody Sector

With regulatory action underway, depleted reserves, and operations effectively frozen, Fortress’s ability to recover seems highly unlikely. Although the regulatory documents do not specify exact customer numbers or the total liabilities, other reports indicate Fortress owed more than US$8 million in fiat and about US$4 million in crypto, while holding less than US$200 000 in cash on hand.

The company’s official X (formerly Twitter) account has reportedly been inactive since July.

In summary, Fortress Trust (now Elemental Financial Technologies) appears to be facing an irreversible collapse. Regulatory intervention confirms it’s unable to match its obligations to client funds, lacks transparency, and is no longer in a safe or authorised position to conduct business. For clients and counterparties, this underscores the critical importance of reviewing the custodial strength, solvency and regulatory compliance of any financial-asset-custody provider.