"I want it for a moment, I don't want it, there must be a reason for Ripple to suddenly act like this."
Announced by Ripple's Chief Executive Officer (CEO) Brad Garlinghouse, the blockchain payments firm has decided to back out of its plans to acquire cryptocurrency-focused company Fortress Trust.
However, Fortress Trust's track record of solving customer problems through innovative product offerings that Garlinghouse still admires has made him committed to continuing to support it.
Admittedly, specific financial details are still not being disclosed, but Ripple as early as September 2023 had intended to acquire Fortress Trust as part of a cash and equity deal.
In addition to describing Fortress Trust as a financial institution that provides financial infrastructure, regulation and licensed Web3 technology for blockchain innovators, Ripple is also investing in the company.
However, the decision to back out of the acquisition came when Fortress Trust faced a security breach resulting in a loss of approximately $15 million in crypto.
However, Fortress Trust CEO Scott Purcell later assured that the loss would be covered immediately and that his team would continue operations as usual while reviewing alternative vendor options.
As of this writing, XRP price has climbed 2.49% to $0.51 in the last 24 hours with the $27 billion market cap still recording a 0.11% decline over the past week.
