Ripple has announced that it will not proceed with its acquisition of Fortress Trust, a Nevada-based chartered trust company. The decision comes after Fortress Trust recently disclosed a theft of approximately $15 million in customers’ cryptocurrency, which the company attributed to a phishing attack on a third-party vendor. Ripple’s CEO, Brad Garlinghouse, stated that the acquisition talks began before the theft occurred, but the incident accelerated the decision not to proceed. Despite this outcome, Ripple will remain an investor in Fortress Trust and will continue to support the company.
The theft from Fortress Trust highlights the increasing vulnerability of cryptocurrency holders to cybersecurity attacks. The blame was placed on an unnamed third-party vendor, later identified as Retool, a San Francisco-based company that had built a portal for a select group of Fortress clients to access their funds. This incident serves as a reminder of the risks involved in storing and managing digital assets, and the need for robust security measures to protect against such attacks. Despite the setback, Ripple acknowledges the talent of the Fortress team and expressed hopes for future collaboration with the company.
Ripple’s decision not to proceed with the acquisition of Fortress Trust demonstrates the company’s cautious approach in the wake of a significant security breach. While Ripple recognizes the value and innovation of the Fortress team’s products, it is prioritizing the safety of its investments and operations. By remaining an investor, Ripple aims to support Fortress Trust, even though the acquisition plans have changed. This development serves as a reminder of the importance of due diligence in evaluating potential acquisitions and partnerships in the rapidly evolving cryptocurrency industry.