Ripple will no longer acquire chartered trust company Fortress Trust, following the news that Fortress lost $15m worth of customers’ digital assets.
The cancelled deal followed hot on the heels of the news that up to $15m of Fortress Trust customer’s digital assets were stolen. The theft was later blamed on Retool, a third party vendor that was victim to a phishing attack.
Last month, Ripple revealed its intention to acquire the compliance firm for an undisclosed fee that was later confirmed to be under $250m.
However, following the turbulence in the RegTech company, the deal has been called off.
CEO of Ripple, Brad Garlinghouse made a statement on social media. He said, “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.
“The Fortress team is incredibly talented, and has built products solving real customer problems. While this outcome is different from what was originally planned, we’ll continue to support them and hope to work together in the future.”
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