In a swift and decisive move, leading crypto payments business Ripple (XRP) has stepped in to mitigate the fallout from a recent security incident that left clients of Fortress Trust in a state of vulnerability. The incident, which Fortress attributed to a compromised third-party vendor’s cloud tool, initially raised concerns about the safety of client funds. However, thanks to Ripple’s quick response, no funds were lost.
Just a few days ago, Fortress Trust sounded the alarm regarding a critical exploit affecting approximately four of its clients. The source of the vulnerability was traced back to a security breach in a third-party vendor’s cloud tool, exposing clients to potential exploitation and financial loss.
Ripple’s intervention proved crucial, promptly assisting Fortress in restoring its clients’ wallets to their original state. A spokesperson from Ripple reassured the public, stating, “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 Trust later confirmed that the impacted wallets had been fully restored, effectively preventing any significant loss of funds. Specific details regarding the amount initially drained and subsequently repaid to customers remain confidential, with Ripple and Fortress choosing to keep this information undisclosed.
Notably, during the security incident, Ripple was already engaged in discussions to acquire Fortress Blockchain Technologies, a subsidiary of Fortress Trust. The incident accelerated the acquisition talks, prompting Ripple to assume responsibility for the customers’ losses as part of the deal.
On September 8th, Ripple officially announced the successful acquisition of Fortress Trust. Ripple’s CEO, Brad Garlinghouse, expressed his enthusiasm about the partnership, “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 collaboration with Fortress Blockchain Technologies began in 2022 when Ripple participated in the company’s seed round. While this acquisition is pending regulatory and due diligence approvals, Ripple has plans to invest in the parent company, Fortress Blockchain Technologies.
As Ripple continues its strategic acquisitions throughout the year, some prominent figures in the crypto space have raised questions. Parrot Capital, for instance, publicly expressed concerns about the due diligence performed by Ripple in light of this deal.
Ripple’s aggressive acquisition strategy has been evident in its recent activities, including the $250 million acquisition of Metaco, a custody startup, and its acquisition of a stake in the popular crypto exchange Bitstamp.
Source: https://www.cryptopolitan.com/crypto-giant-ripple-safeguards-fortress-trust-amid-security-breach/