coinedition.com
The crypto community is speculating about the fate of the Web3 financial service firm Fortress Trust as Ripple proclaimed its decision to no longer pursue an outright acquisition of the business.
In a recent tweet, Ripple CEO Brad Garlinghouse revealed that Ripple had changed its plans regarding acquiring Fortress Trust. Garlinghouse stated while Ripple had signed a letter of intent to acquire Fortress Trust on September 9, it has since decided to cancel the acquisition bid.
A few weeks ago, we signed a letter of intent to acquire Fortress Trust – we’ve since made the decision not to move forward with an outright acquisition, though Ripple will remain an investor in @Fortress_io.
— Brad Garlinghouse (@bgarlinghouse) September 28, 2023
Meanwhile, Garlinghouse noted that Ripple would nonetheless remain an investor in Fortress Trust. Despite the altered course of action, Garlinghouse admired the Fortress Trust team, highlighting their remarkable talent and ability to create products that address real customer needs.
Garlinghouse added, “While this outcome is different from what was originally planned, we’ll continue to support them and hope to work together in the future!”
However, Ripple’s decision to no longer buy out Fortress Trust has raised concerns within the crypto community. Some people reacting to the development expressed a view that they had anticipated the outcome.
“So what happens to Fortress Trust now that Ripple is no longer bailing them out?” Pledditor, a notable crypto influencer, tweeted.
Called it
— Pledditor (@Pledditor) September 28, 2023
So what happens to Fortress Trust now that @Ripple is no longer bailing them out? Do they still have a balance sheet hole in customer funds? Will they go into Nevada receivership and file bankruptcy? @coryklippsten @CitizenBitcoin https://t.co/tZnpqVWL60
Moreover, questions have emerged regarding the status of Fortress Trust’s balance sheet and the potential impact on customer funds. Also, Pledditor speculated about Fortress Trust facing financial challenges that would potentially result in the filing of bankruptcy protection.
It is worth mentioning that Ripple’s earlier acquisition bid occurred in the wake of a recent security breach that affected four users of Fortress Trust. Reportedly, Ripple intervened by providing financial support to assist those affected by the breach.