Ripple says it will not pursue acquisition

Ripple says it will not pursue acquisition

Since Ripple has made the decision not to pursue an outright acquisition, though Ripple will still remain an investor, said Brad Garlinghouse, the CEO of Ripple.

Ripple said in a statement on Sept. 8 that it intended to buy Fortress for an undisclosed amount. A source with knowledge of the matter said the price tag was less than the $250 million Ripple paid for a custody firm Metaco in May.

The day before Fortress Trust revealed a theft of customers' cryptocurrency, it was later revealed to be worth more than $15 million. It pinned the blame on an unnamed third-party vendor that had fallen victim to a phishing attack. Retool, a Silicon Valley company with Fortune 500 clients, built a portal for a handful of Fortress clients to access their funds. Ripple said the acquisition talks predated the theft, but it accelerated them.

Scott Purcell, with a significant track record in blockchain, created Fortress Trust, which provides financial and regulatory infrastructure for blockchain companies. He was CEO of the crypto-curstodian Prime Trust until 2020. Years after he left Prime Trust, BitGo was ordered into receivership by its fellow custodian, BitGo, following its proposed acquisition of the firm.

He added: 'It will continue to support them and hope to work together in the future.