As reported in a news article, Ripple, a prominent player in cryptocurrency payments, has intervened to mitigate the financial losses suffered by clients of Fortress Trust, a blockchain infrastructure-focused startup.
According to Fortress Trust, the incident was caused by a security vulnerability involving a third-party vendor’s compromised cloud tools.
Ripple, already a minority investor in Fortress, promptly intervened as part of an ongoing acquisition process, although no funds were compromised.
The precise amount of crypto losses is still unknown, and the company confirmed it could not comment on affected wallets or customers.
Fortress Trust responded swiftly to the security lapse by terminating the vendor integration and temporarily suspending accounts to evaluate and improve system-wide security.
On September 8, Ripple formally announced the acquisition, highlighting the potential long-term synergies between the two corporations.
The transaction was financed with cash and equity, with no valuation disclosed.
However, regulatory and due diligence approvals are required for the acquisition, which, once completed, will bolster its portfolio of regulatory licenses.
Fortress Trust, a subsidiary of Fortress Blockchain Technologies, holds the coveted Nevada Trust License.
The strategic vision of Ripple involves sustained investment in Fortress and its FortressPay services, which now incorporate its advanced payments technology.
This acquisition follows the company’s recent $250 million acquisition of cryptocurrency custody provider Metaco, reinforcing its dedication to expanding its presence and regulatory compliance in cryptocurrency.
With Fortress Trust now under its aegis, the company’s regulatory standing is further strengthened, with licenses such as the New York BitLicense, over 30 Money Transmitter Licenses across the United States, and an in-principle Major Payment Institution License from the Monetary Authority of Singapore.
