XRP coin faced panic sell pressure, as Ripple decides not to acquire Fortress Trust
Ripple decided not to acquire Fortress Trust firm but will remain one of the dominant investors.
Ripple is a San Francisco headquartered fintech firm, known for its XRP crypto-powered cross-border payment services which remain efficient & cost-effective over other payment services. Since Dec 2020, this company has been under huge legal hurdles with the United States Securities and Exchange Commission (SEC).
Just a few weeks ago Ripple announced that it will acquire Fortress Trust company and also signed a letter of intent.
On 28 Sep 2023, Ripple CEO Brad Garlinghouse announced via X (Twitter) that Ripple officials decided not to acquire Fortress Trust but will maintain Ripple’s position as an investor in this company.
Garlinghouse failed to explain the reason why the company decided to go back against its previous plan but he appreciated the role of Fortress Trust’s talented team and confirmed that Ripple will continuously work with the firm.
Following this news, the trade price of XRP coin saw a small correction by nearly 2%, as we can see in the XRP coin’s 7days trade price graph.
The current trade price of this coin is $0.5097 & this trade price is 1.8% high over the last 24 hours trade price, as a part of usual market upturn.
Ripple vs SEC
Since Dec 2020, Ripple has been in a legal conflict with the SEC agency. According to the SEC agency, Ripple’s past financial activities were subject to the Securities Act. In short, Ripple violated the Securities Act with the sale of XRP coins.
In July of this year, the court judge ruled in favor of Ripple but the SEC agency challenged the court ruling.
Pro-XRP crypto attorney & founder of CryptoLaw firm John Deaton shared his opinion on the SEC’s move and said that the financial regulator is only trying to expand this case & nothing.
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