Ripple, a cryptocurrency payment network and investor in startup Fortress Trust, has compensated the latter's customers for losses incurred due to a security breach involving a third-party supplier's cloud tools. This move comes amidst ongoing discussions about Ripple's potential acquisition of Fortress, a blockchain framework company. The security issue, which occurred on Monday, did not result in any funds being lost, but it did fast-track the dialogue between the two companies regarding the acquisition.
Following the security incident, Fortress swiftly terminated its association with the compromised supplier and began investigating the system breach. Ripple, seizing this opportunity, initiated the takeover process via cash and equity, although the exact value remains undisclosed.
The acquisition of Fortress, an affiliate of Fortress Blockchain Technologies holding a Nevada Trust License, would provide Ripple with an additional license. This could strategically position Ripple to leverage Nevada's regulatory compliance framework, enhancing its credibility in the crypto industry and potentially attracting more investors.
Ripple's recent acquisitions reveal an aggressive expansion strategy. The company spent $250 million to acquire Metaco, a Swiss custody startup, and also invested in Bitstamp, a Luxembourg-based cryptocurrency exchange. The acquisition of Metaco has enabled Ripple to custody, issue, and settle various tokenized assets securely.
In July 2023, Ripple confronted the United States Securities and Exchange Commission (SEC) over claims that some XRP sales by Ripple were not securities offerings. This legal battle seems to have had minimal impact on XRP's price so far. However, with strategic moves like the potential acquisition of Fortress and previous purchases of Metaco and Bitstamp shares, investors are anticipating a positive outlook for XRP.
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