Ripple Assists in Fund Recovery for Fortress Customers Within Acquisition Agreement

Ripple, a leading crypto payments business, has ensured that Fortress Trust’s clients affected by a recent security incident have been fully compensated.

Ripple Steps In to Help Fortress Customers

Fortress Trust recently reported a critical exploit that impacted four of its customers. According to Fortress, a third-party vendor experienced a security breach in its cloud tool, which exposed the clients to potential exploitation and resulted in the loss of some funds.

Ripple swiftly intervened and assisted Fortress in compensating the affected customers. A spokesperson from Ripple stated, “Luckily, Ripple was able to quickly step in and ensure that the customers are made whole again. There have been no breaches to Fortress technology or systems.”

Following Ripple’s intervention, the affected wallets were fully restored, indicating that there was no significant financial loss. The exact amount of funds initially lost and repaid to the customers has not been disclosed by either Ripple or Fortress.

Interestingly, at the time of the security incident, Ripple was already in discussions to acquire Fortress Blockchain Technologies. The incident accelerated the acquisition talks, leading Ripple to shoulder the customers’ losses as part of the deal.

Ripple’s Acquisition of Fortress Trust

On September 8, Ripple announced its acquisition of Fortress Trust. In a press release, Ripple CEO Brad Garlinghouse stated,

“We’re excited to bring on this team and its technology to accelerate our business and continue pressing our advantage in the areas critical to crypto infrastructure.”

Ripple’s association with Fortress Blockchain Technologies began in 2022 when Ripple participated in the company’s seed funding round. It is important to note that the acquisition is subject to regulatory and due diligence approval. However, Ripple plans to invest in the parent company, Fortress Blockchain Technologies.

While Ripple continues to expand its portfolio through acquisitions, concerns have been raised by some cryptocurrency experts. Parrot Capital publicly tweeted, “Terrible due diligence on the part of Ripple if they go through with this deal.”

Notably, this year, Ripple has been actively acquiring companies, including a $250 million investment in custody startup Metaco and the purchase of a stake in popular crypto exchange Bitstamp.