Fortress Trust Declares Insolvency: Concerns Echo Prime Trust Collapse

The crypto custodial firm Fortress Trust has declared insolvency, following client asset safeguarding failures. This marks another concerning turn in the industry, echoing the collapse of Prime Trust earlier this year. The Nevada Financial Institutions Division issued a cease-and-desist order on October 22, 2025, after investigations revealed serious shortcomings in the firm’s ability to protect customer assets. Scott Purcell, Fortress Trust’s founder and former CEO, is facing scrutiny for his leadership at both Prime Trust and now, Fortress Trust, raising concerns about trust and stability within the industry.