By: Eva Baxter
Fortress Trust's previously planned acquisition by Ripple has been ultimately scrapped, as indicated by official statements made last week. Ripple's CEO, Brad Garlinghouse, revealed that the firm had reversed its decision on the outright acquisition but will persevere as an investor in Fortress.
Initial acquisition plans were announced on September 8, shortly followed by an alarming revelation from Fortress Trust. The finance firm disclosed a security breach involving a third-party vendor that victimized four of its customers. Even though Fortress initially declared that no finances were lost, an eventual disclosure revealed a significant loss amounting between $12 million and $15 million worth of cryptocurrency. Ripple had assumed responsibility for the extensive loss, an initiative undisclosed during the initial acquisition announcement.
Reports suggest that Ripple is expected to recover its indemnification offered to Fortress Trust. The sum will allegedly be recouped after Fortress obtains the funds lost in the breach from the targeted third-party. Following the breach and nixed deal, Ripple chooses to maintain its investment in Fortress, expressing ongoing support for the financial infrastructure firm and its endeavors.
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