In a surprising move, Ripple has decided to walk away from a $15 million deal to acquire Fortress Trust, just 20 days after it was announced. Ripple’s CEO, Brad Garlinghouse, 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.
The Reason for the Ripple-Fortress Deal Collapse?
One of the primary reasons behind the Ripple deal’s cancellation is a recent security breach at Fortress Trust. The company has reportedly been hacked, which may have caused Ripple to reconsider its decision. The collapse of the deal seems to have been significantly influenced by internal divisions within Fortress Trust. During an interview with Bloomberg, Scott Purcell, founder of Fortress Trust, stated that internal divisions were a major factor in the acquisition deal’s collapse.
Ripple’s decision to cancel the deal could have knock-on effects on other companies connected to Fortress Trust, such as Swan Bitcoin. Fortress Trust could reimburse Ripple for the $15 million stolen in the hack once retrieved from the third party involved.
In addition to this recent twist, Ripple continues to grapple against the U.S. Securities and Exchange Commission (SEC) in a high-stakes legal battle. Ripple’s president, Monica Long, recently stated that the company remains focused on its mission despite legal challenges.
It remains to be seen the reopening of the Ripple deal with Fortress Trust going forward. XRP increased by 1.9% in the past 24 hours and remains the fifth-largest cryptocurrency, trading at $0.5083.
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Disclaimer: Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
