Ripple comes to the aid of clients associated with Fortress Trust, who fell victim to a security breach during an acquisition agreement, successfully recuperating their lost assets.
Fortress Trust experienced a security incident within its customer base. This incident was linked to a compromised third-party vendor’s cloud tool. However, thanks to Ripple’s prompt and proactive response, customer funds were successfully recovered.
Ripple’s Swift Response Ensures Client Fund Recovery for Fortress Customers
Recently, Ripple restored funds for four Fortress customers after Fortress Trust had identified a major vulnerability impacting these clients.
In a joint statement, Fortress emphasized a security breach involving a third-party vendor’s cloud tool. This breach exposed clients to potential exploitation and led to a partial loss of their assets.
However, Ripple promptly intervened, assisting Fortress in restoring its clients to their previous financial positions. A spokesperson for Ripple affirmed, “Fortunately, Ripple was well-prepared to promptly act and guarantee the full retrieval of customers’ assets. No breaches were identified in Fortress’ technology or systems.”
Subsequently, Fortress confirmed that the affected wallets had been fully replenished, indicating the absence of substantial financial losses. The exact amounts initially compromised and later reimbursed to customers remain undisclosed. Both Ripple and Fortress have kept this information confidential.
At the time of the security incident, Ripple was in the midst of negotiations to acquire the Fortress Blockchain Technologies subsidiary. This incident accelerated the acquisition discussions, leading Ripple to assume responsibility for the clients’ losses as part of the deal.
Ripple Announces Acquisition of Fortress Trust Amidst Ongoing Expansion Strategy
On September 8th, Ripple officially announced its acquisition of Fortress Trust. In a press release, Ripple’s CEO, Brad Garlinghouse, expounded;
“We are enthusiastic about welcoming this team and their technology on board, enabling us to expedite our operations and maintain our competitive edge in critical areas of crypto infrastructure.”
Ripple’s association with Fortress Blockchain Technologies commenced in 2022, when the former participated in the latter’s initial funding round. It is essential to note that this acquisition is pending regulatory approval and undergoing due diligence. Nevertheless, Ripple intends to invest in the parent company, Fortress Blockchain Technologies.
As Ripple continues its spree of acquisitions, some prominent figures in the crypto community have raised concerns. Parrot Capital, in particular, took to public platforms, questioning the adequacy of Ripple’s due diligence should the deal proceed.
Ripple has been remarkably active in its acquisition endeavors this year, having allocated $250 million for the acquisition of Metaco, a custody startup. Additionally, the company secured a stake in the renowned cryptocurrency exchange, Bitstamp.
Read More:
Thai Authorities Crack Down on $27M Crypto Scam: Five Arrested in Massive Fraud Case
FTX Report Shows Payments to Shaq, Naomi Osaka, David Ortiz, and Others