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Ripple Bails Out Fortress Trust After Hack

Ripple's statement sheds light on Fortress's security controversy.

Ripple Bails Out Fortress Trust After Hack

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Ripple, following its acquisition of Fortress Trust, has confirmed compensation for client losses, contradicting Fortress’s prior claims of no losses from a security incident.

Ripple has confirmed that it compensated the losses incurred by clients of its newly acquired crypto custodian, Fortress Trust. This action contradicts Fortress’s earlier statement suggesting no funds were lost during a recent security incident.

Last week, Fortress Trust took to twitter to explain that a compromise in a third-party vendor’s cloud tools had affected four of its customers, emphasizing that no funds were lost.

However, a statement from Ripple today paints a different picture, suggesting that the company accelerated the acquisition of Fortress in order to compensate for the losses of customers resulting from the aforementioned security issue.

“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” stated the spokesperson from Ripple.

The value of the crypto lost due to the incident remains undisclosed.

Fortress Trust was founded two years ago by Scott Purcell, who had previously founded another crypto custodian called Prime Trust. Prime Trust declared bankruptcy just last month, amid challenges like an inability to meet customer withdrawals and a significant $8 million loss in TerraUSD investments.

Ripple’s native token XRP is changing hands at $0.48, up 2% in the last 24 hours.

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