Ripple pulls back from Fortress acquisition 20 days after announcement

Within 20 days of announcing the acquisition of Fortress Trust to allegedly expand its pool of licenses in the United States, financial technology firm Ripple is pulling out of the deal.

Ripple CEO Brad Garlinghouse made the announcement on X (formerly Twitter) on Sept. 28, saying that “we’ve since made the decision not to move forward with an outright acquisition,” although Ripple will remain a shareholder in Fortress Trust’s parent company Fortress Blockchain Technologies.

Ripple first announced the acquisition on Sept. 8, surprising even company insiders with the news, Cointelegraph has learned. At the time, Ripple revealed plans to invest in other Fortress group companies, including affiliated firm FortressPay.

A few days later, Fortress Trust acknowledged that the acquisition was rushed by a security incident involving a third-party analytics vendor. In an interview with Fortune, Fortress CEO Scott Purcell said the company lost $12 million to $15 million in the attack. A majority of the funds were Bitcoin, along with small amounts of USD Coin and Tether. Ripple, an investor in Fortress since its seed round in 2022, had to step in to make customers whole.

#news #crypto #ripple

Sep-29-2023 07:42:43 AM