Within a few days of announcing the acquisition of the Fortress Trust in order to expand the pool of licenses in the United States, Ripple, the financial technology firm, seems to be pulling out of this deal. Brad Garlinghouse, the CEO of the company, made this announcement on X on the 28th of September, stating that they had taken this decision to not move forward with the acquisition, despite the company remaining a major shareholder in the parent company of Fortress Trust- which is the Fortress Blockchain Technologies.
This was first announced by the company on the 8th of September, where they surprised some of the insiders in the company with this news. At the time, the company had also revealed plans to invest in other companies in the Forest Group, which included the affiliated firm FortressPay.
Ripple’s Acquisition Of Fortress Group Has Been Broken Down
Just a few days after that, Fortress Trust went on to acknowledge that the acquisition had been rushed by a security incident that involved a third-party analytics vendor. In one of the interviews conducted with Fortune, the CEO of the company stated that the company had lost around $12 to $15 million in this particular attack. This is where Ripple had to step in order to make sure the customers weren’t cutting the company in half.
In the many comments with Cointelegraph, Purcell also stated that the cancelation of the merger was definitely not that big of a deal. According to them, the change in plans was quite unrelated to the entire security incident. This comes at the same time as Ripple continues its high-profile battle with the United States Securities and Exchange Commission, wherein the deal could be benefiting other companies that were linked to Fortress.