- Ripple rescues Fortress Trust customers after a security breach involving a third-party vendor’s compromised cloud tools.
- The cryptocurrency payment giant swiftly accelerates its acquisition of Fortress Trust, showcasing a commitment to long-term synergies.
- With the acquisition, the company strengthened its regulatory licenses, positioning itself as a prominent player in the crypto industry.
In a recent turn of events, cryptocurrency payment giant Ripple stepped in to cover losses incurred by customers of blockchain infrastructure startup Fortress Trust, according to a report by The Block.
The incident was triggered by a security breach involving a third-party vendor’s compromised cloud tools, as announced by Fortress Trust.
Though no funds were lost in the breach, Ripple, already a minority investor in Fortress, swiftly intervened as part of an ongoing acquisition process. The exact amount of crypto losses remains undisclosed, the company confirmed it couldn’t comment on specific wallets or customers affected.
Fortress Trust reacted promptly to the breach, terminating the vendor integration and temporarily suspending accounts to assess and enhance system-wide security.
Ripple officially announced the acquisition on September 8, emphasizing the potential long-term synergies between the two companies. The deal was financed through a combination of cash and equity, with no disclosed valuation.
However, the acquisition is subject to regulatory and due diligence approvals, which, once completed, would bolster its portfolio of regulatory licenses. Fortress Trust, a subsidiary of Fortress Blockchain Technologies, holds a coveted Nevada Trust License.
Ripple’s strategic vision includes continued investment in Fortress and its FortressPay services, now incorporating its advanced payments technology.
This acquisition follows the company’s recent purchase of crypto custody provider Metaco for $250 million, reinforcing its commitment to expanding its presence and regulatory compliance in the cryptocurrency space.
With Fortress Trust now under its wing, the company further solidifies its regulatory standing, boasting licenses such as the NY BitLicense, over 30 Money Transmitter Licenses across the U.S., and an in-principle Major Payment Institution License from the Monetary Authority of Singapore.
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