Million

Fortress

Security

<p>The post <a rel="nofollow" href="https://coinpedia.org/news/ripple-cancels-15-million-deal-with-fortress-trust/">Ripple Cancels $15 Million Deal with Fortress Trust: What Went Wrong?</a> appeared first on <a rel="nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>In a surprising move, <a href="https://coinpedia.org/news/ripple-vs-sec-lawsuit-ftcs-shields-secs-missteps/">Ripple</a> has decided to walk away from a substantial $15 million deal, just 20 days after it was announced. This unexpected turn of events has left many wondering about the motives behind Ripple’s decision. The deal, initially viewed as Ripple’s strategic move to enhance its regulatory standing in the U.S., was with <a href="https://coinpedia.org/news/xrp-news-legal-expert-john-deatons-take-on-ripples-resilience-amid-sec-lawsuit/">Fortress Trust</a>. </p> 
<p>So, what exactly prompted Ripple to have a change of heart, especially as the shutdown of the U.S. government looms?</p> 
<h2 class="wp-block-heading" id="h-garlinghouse-addresses-queries">Garlinghouse Addresses Queries</h2> 
<p>Ripple’s CEO, <a href="https://x.com/bgarlinghouse/status/1707455045942292954?s=20">Brad Garlinghouse</a>, confirmed this unexpected turn of events through a tweet, stating that although they had signed a letter of intent for the acquisition, they have now chosen not to proceed with the complete acquisition. However, Ripple will remain an investor in Fortress Trust.</p> 
<p>Also Read: <a href="https://coinpedia.org/crypto-live-news/ripple-drops-acquisition-of-fortress-trust-will-continue-collaboration/">Ripple Drops Acquisition of Fortress Trust, Will Continue Collaboration!</a></p> 
<h3 class="wp-block-heading" id="did-the-security-breach-have-anything-to-do-with-it">Did the Security Breach Have Anything to Do With It?</h3> 
<p>One of the primary reasons behind the deal’s cancellation is a recent <a href="https://coinpedia.org/crypto-live-news/15-million-cryptocurrency-hack-via-google-authenticator-cloud-sync/">security breach</a> at Fortress Trust. On September 7, the company revealed that a hack had compromised four of its customers, stemming from a breach of one of its third-party vendors and cloud tools. Initially downplaying the incident, Fortress’s founder and CEO, Scott Purcell, later admitted to a substantial loss, ranging from $12 million to $15 million in cryptocurrency, due to the breach.</p> 
<p>In response to this security breach, Ripple extended a helping hand to Fortress Trust by covering the multi-million-dollar loss. It’s worth noting that this information was not part of the initial acquisition announcement. So, for those concerned about Ripple’s potential losses, there’s reason to believe they will recover the $15 million, as <a href="https://www.bloomberg.com/news/articles/2023-09-28/ripple-backs-out-of-fortress-trust-purchase-with-no-explanation-xrp">Bloomberg Reports</a> suggest that Fortress Trust plans to reimburse Ripple once it retrieves the funds from the third party involved in the hack.</p> 
<h2 class="wp-block-heading" id="strong-ripple-s-internal-issues-strong-at-play"><strong>Ripple’s Internal Issues</strong> at Play</h2> 
<p>Scott Purcell revealed in his Bloomberg interview that internal divisions within Fortress Trust played a significant role in the breakdown of the acquisition deal. Some employees had expressed reservations about the plan, possibly contributing to Ripple’s decision to withdraw from the acquisition.</p> 
<p>Ripple’s decision to pull out of the deal could have ripple effects (pun intended) on other companies connected to Fortress Trust. For instance, Swan Bitcoin, which is currently in a joint venture with BitGo to establish a Bitcoin-only trust company in the U.S., may need to reevaluate its business operations as its direct association with Fortress Trust via Ripple comes to an end.</p> 
<h3 class="wp-block-heading" id="xrp-price">XRP Price </h3> 
<p>In addition to this recent twist, Ripple continues to grapple against the U.S. Securities and Exchange Commission in a high-stakes legal battle. Ripple’s native token, <a href="https://coinpedia.org/price-prediction/xrp-ripple-price-prediction/">XRP</a>, has experienced a modest 0.3% boost in the last 24 hours, maintaining its position as the fifth-largest cryptocurrency in the market, trading at $0.5056.</p> 
<p>Read More: <a href="https://coinpedia.org/price-analysis/crypto-market-prediction-ada-xrp-and-bnb-price-expected-to-decline-soon/">Altcoin Market Shake-Up: ADA, XRP, and BNB Price Expected to Crash Soon</a></p>

Ripple Cancels $15 Million Deal with Fortress Trust: What Went Wrong?

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