HomeCrypto UpdatesRipple, a Tech Company, Decides Not to Pursue Acquisition of Fortress Trust

Ripple, a Tech Company, Decides Not to Pursue Acquisition of Fortress Trust

Published on

Ripple brushes Fortress Trust acquisition plans off the table.

Just weeks after announcing plans to buy Fortress Trust to broaden its US licensing portfolio, fintech leader Ripple has unexpectedly backed out of the acquisition.

The unexpected turn of events was confirmed by Ripple CEO Brad Garlinghouse on social media platform X (formerly Twitter) on September 28th.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

Garlinghouse indicated that although the acquisition is off the table, Ripple would still hold a stake in the parent company, Fortress Blockchain Technologies.

Initially announced on September 8th, Ripple’s acquisition proposal surprised the public and those within the company. At the beginning of the month, Ripple also hinted at its intention to make further investments in other companies under the Fortress umbrella, including its payment subsidiary, FortressPay.

Fortress Trust’s CEO Scott Purcell later revealed that a cybersecurity incident influenced their decision to agree to the acquisition. The security breach, involving an external analytics service, led to a loss of up to $15 million in Bitcoin (BTC), USD Coin (USDC) and Tether (USDT).

When asked to comment on the terminated deal, Purcell said it wasn’t a significant concern. He further clarified that the change in acquisition plans had no connection to the recent security breach, stating:

They are an investor in Fortress and a great partner. Nothing changes there.

Despite contacting Ripple for additional commentary, the company decided not to delve into conversation beyond their CEO’s initial public statement.

This pivot occurs as Ripple remains entangled in a high-stakes legal face-off with the US Securities and Exchange Commission. The breakdown of the acquisition deal may inadvertently benefit other firms associated with Fortress.

Ripple has abruptly halted its planned acquisition of Fortress Trust just 20 days after announcing the deal. The decision leaves Fortress’s existing partnerships intact and adds a new twist to Ripple’s ongoing legal and investment saga.

Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she’s not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.

Latest articles

Analyst Suggests Ethereum Price Could Surge to $3,100 with Bullish Momentum

Ethereum (ETH), the second-largest cryptocurrency, has seen a significant price increase over the past...

Cboe Digital Announces Plan to Introduce Margin Futures Trading for Bitcoin and Ethereum by 2024

On Nov. 13, Cboe Digital announced that it will soon launch trading and clearing...

Top Trader Predicts Significant Price Increases for Sushi and Apecoin – Check Out His Projections

A crypto strategist says more rallies are up ahead for prominent decentralized exchange (DEX)...

What is the difference between NVMe and M.2?

`` Over the last decade, solid-state drives (SSDs) have become the top choice for many...

More like this

Analyst Suggests Ethereum Price Could Surge to $3,100 with Bullish Momentum

Ethereum (ETH), the second-largest cryptocurrency, has seen a significant price increase over the past...

Cboe Digital Announces Plan to Introduce Margin Futures Trading for Bitcoin and Ethereum by 2024

On Nov. 13, Cboe Digital announced that it will soon launch trading and clearing...

Top Trader Predicts Significant Price Increases for Sushi and Apecoin – Check Out His Projections

A crypto strategist says more rallies are up ahead for prominent decentralized exchange (DEX)...
bitcoin
Bitcoin (BTC) $ 68,528.36 3.38%
ethereum
Ethereum (ETH) $ 3,793.63 7.15%
tether
Tether (USDT) $ 1.00 0.23%
bnb
BNB (BNB) $ 420.49 0.24%
solana
Solana (SOL) $ 137.10 3.68%
staked-ether
Lido Staked Ether (STETH) $ 3,778.59 7.00%
xrp
XRP (XRP) $ 0.650488 1.32%
usd-coin
USDC (USDC) $ 1.00 0.10%
cardano
Cardano (ADA) $ 0.777133 1.19%
dogecoin
Dogecoin (DOGE) $ 0.189523 12.77%