Ripple Abandons Fortress Trust Deal After Security Breach
Ripple has decided to abandon its deal with Fortress Trust after a security breach. Learn more about the implications and the reasons behind Ripple's decision.
Posted 10 months ago in Blockchain
Ripple, the San Francisco-based blockchain firm, has made the decision to abandon its previously announced acquisition of Fortress Trust. CEO Brad Garlinghouse announced the U-turn on the X social media platform, stating that Ripple will instead remain an investor in Fortress.
The initial announcement of Ripple's intention to acquire Fortress Trust came just a few weeks ago, following the company's purchase of Swiss custody startup Metaco. The acquisition was seen as a strategic move to expand Ripple's portfolio of regulatory licenses and strengthen its position in the crypto infrastructure sector.
However, the deal faced complications when Fortress experienced a significant security breach. A theft of $15 million occurred as a result of a sophisticated phishing attack on one of Fortress's third-party vendors, Retool. The attackers gained elevated access to Retool's internal admin systems, compromising the accounts of 27 cloud customers, mostly from the crypto sector.
Despite the security breach, Ripple had included a bailout clause in the acquisition agreement to protect the hacked customers of Fortress. The company has promised to compensate the affected customers as part of the deal, ensuring they do not suffer due to the security lapses at Fortress.
Last updated 9/28/2023, 4:31:39 PM
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