Ripple has decided to reverse its planned acquisition of
Fortress Trust, a subsidiary of Fortress Blockchain Technologies that offers
wallet and payment services. Less than a month after announcing its intention
to acquire the firm, Ripple has chosen to back out of the deal.
Brad Garlinghouse, the CEO of Ripple, said on X (formerly
Twitter): “A few weeks ago, we signed a letter of intent to acquire
Fortress Trust, we’ve since made the decision not to move forward with an
outright acquisition, though Ripple will remain an investor in Fotress
Trust.”
This strategic acquisition was seen as an essential step
towards enhancing Ripple’s regulatory licenses and bolstering its
infrastructure capabilities, particularly in the blockchain and cryptocurrency
payments solutions sector. As Ripple continued to grapple with its ongoing
legal dispute with the SEC, the acquisition aimed to position the company as a
trusted brand for enterprises, Finance Magnates reported.
One key development that may have contributed to Ripple ‘s
decision was a recent security incident involving Fortress Trust. A few days
after Ripple’s initial announcement, Fortune Magazine reported that Fortress
Trust had suffered losses ranging from US$12 million to US$15 million due to a
cryptocurrency hack. Scott Purcell, the Founder and CEO of Fortress Trust,
revealed that only a small fraction of their extensive customer base, specifically
“four…
