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Ripple Accelerates Fortress Trust Acquisition Amid Security Incident and Controversy

Algoine News
Summary:
Ripple's acquisition of Fortress Trust was expedited after a security incident involving a third-party vendor. Fortress lost millions, primarily in Bitcoin, but Ripple swiftly compensated customers. The incident sparked controversy within the crypto community, with differing accounts from Fortress and BitGo. Ripple plans to further invest in Fortress' group.
Financial technology company Ripple confirmed that its takeover of Fortress Trust on September 8 was expedited due to a security incident involving a third-party analytics vendor. The incident, which compromised the cloud tools of the vendor, prompted discussions between Ripple and Fortress to intensify. Fortress CEO Scott Purcell revealed that the company lost between $12 million to $15 million, primarily in Bitcoin, along with smaller amounts in USD Coin and Tether. Ripple, being an investor in Fortress, swiftly stepped in to make sure customers were fully compensated. Furthermore, Ripple assured that there were no breaches of Fortress technology or systems. The incident sparked controversy within the crypto community, with claims that Fortress was not forthcoming about the event. BitGo CEO Mike Belshe alleged that Fortress chose to downplay the incident, while Fortress co-founder Kevin Lehtiniitty defended the company, stating that BitGo was fully informed from the beginning. Ripple also announced its plans to further invest in Fortress' group, including ongoing discussions with parent company Fortress Blockchain Technologies and FortressPay.

Published At

9/13/2023 7:00:00 PM

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