The Nevada Financial Institutions Division has ordered the shutdown of Fortress Trust on October 22, 2025, citing insolvency and liquidity issues that risk over $12 million in assets and 250,000 client accounts. This action comes following a series of financial challenges for Fortress Trust, under the leadership of Scott Purcell. A recent security breach acquisition and subsequent changes in leadership further contributed to these difficulties. The closure is expected to have significant implications for investors, clients, and the broader crypto industry, as well as impacting regulatory frameworks around asset custody. 250,000 clients may lose access to their funds, while nearly $12 million worth of assets face uncertainty. The shutdown highlights vulnerabilities in the crypto ecosystem’s reliance on certain custodial solutions, pushing institutions towards more secure and regulated custodians. Experts anticipate a shift toward stricter regulatory models for asset custody, with potential changes in how financial ecosystems work.