Ripple has taken the initiative and compensated the losses incurred by the customers of the startup Fortress Trust, which is into the blockchain framework. This is a step in the direction of its plan to take over the company. Fortress sent out a tweet stating that its customers were impacted by a third-party supplier who had his cloud tools tampered with. However, funds have not been lost. Ripple entered the scene and did its bit.
According to a spokesperson for Ripple, this event initiated the plans for a complete takeover, given that Ripple is a current investor in Fortress and that the idea had been previously proposed. Ripple had the opportunity to compensate Fortress’ customers. It is also true that the technology and systems of Fortress are not currently under attack. Uncertainty surrounds the magnitude of crypto loss.
Following the unfortunate happenings, Fortress wasted no time in ending the supplier incorporation and the connectivity to accounts and turned towards identifying the system breach. Ripple, for its part, started the process of taking over via cash and equity. The value remains under cover.
Once all the formalities are over and the acquisition is completed, Ripple will come in for an added license since the Fortress Trust, which is an affiliate of Fortress Blockchain Technologies, comes with a Nevada Trust License. As per Ripple, the investments in Fortress will carry on, and its FortressPay services will utilize the payment technology of Ripple.
Recently, Ripple has been on a buying binge. The entity dished out $250 million for taking over Metaco, which is a Swiss custody startup, along with a share in the crypto exchange Bitstamp.
The month of July 2023 witnessed Ripple taking on the United States Securities and Exchange Commission, with a federal judge mentioning the fact that some sales of XRP carried out by Ripple were not really securities offerings.