Fortress Trust’s clientele who were hit by a security incident have been made whole by Ripple, a leading crypto payments business.
The incident, which Fortress attributed to a compromised cloud tool of a third-party vendor, did not result in any loss of funds for customers, thanks to Ripple’s quick off-the-mark action.
Ripple Makes 4 Fortress Customers Whole
A few days ago, Fortress Trust drew attention to a critical exploit that impacted about four of its clientele. In the shared tweet, Fortress pointed out that a third-party Vendor suffered a cloud tool security breach, exposing the clients to exploitation, with a portion of their funds being lost as a result.
However, Ripple intervened soon after, aiding Fortress to make the latter’s clients whole again. Per a Ripple spokesperson, “Luckily, Ripple was in a position to act quickly to step in and make customers whole, and there have been no breaches to Fortress technology or systems.”
Fortress made it clear afterward that the impacted wallets were made whole again, implying no severe loss of funds. The finer details of the sums initially drained and repaid to customers’ accounts remain under wraps by both Ripple and Fortress.
At the time of the attack, Ripple was in discussions to acquire the Fortress Blockchain Technologies subsidiary. The incident hastened the acquisition talks, prompting Ripple to shoulder the customers’ losses as part of the deal.
Ripple’s Acquiring Fortress Trust
On Sept. 8, Ripple announced the acquisition of Fortress Trust. In a press release, the former’s CEO, Brad Garlinghouse, explained,
“We’re excited to bring on this team and its technology to accelerate our business and continue pressing our advantage in the areas critical to crypto infrastructure.”
Ripple’s relationship with Fortress Blockchain Technologies began in 2022 when the former participated in the latter’s seed round. This acquisition is yet to receive regulatory and due diligence approval. However, Ripple plans to invest in the parent company, Fortress Blockchain Technologies.
As the network continues with the buying spree, some crypto KOL have raised questions, with Parrot Capital even publicly tweeting, “Terrible due diligence on the part of Ripple if they go through with this deal.”
Ripple has been on a solid buying spree this year, even spending $250 million in acquiring Metaco, a custody startup. Furthermore, the company purchased a stake in the popular crypto exchange Bitstamp.