Nevada-based Crypto Custodian Fortress Trust Undergoes Reorganization After Hack
A hack that resulted in the loss of millions of dollars has forced Nevada-based crypto custodian Fortress Trust to undergo a significant reorganization. The firm has made changes at the executive level and reduced its workforce in an effort to stay afloat.
Founder and CEO Steps Down, New CEO Appointed
Scott Purcell, the founder and CEO of Fortress, has stepped down as chief executive. The firm has appointed Rich Hauschild, former COO of crypto investment firm iTrustCapital, as the new CEO. Additionally, at least six employees, primarily from the sales department, have been let go.
Purcell Remains on Board of Parent Company
Despite his departure as CEO, Scott Purcell will remain a board member of Fortress’s parent company, Fortress Blockchain Technologies. However, the company has not made any public statements regarding the reorganization on social media platforms.
Hack Results in Loss of Millions
In September 2023, Fortress suffered a hack attack that led to the loss of approximately $12 million to $15 million in Bitcoin (BTC), Tether (USDT), and USD Coin (USDC). The firm was able to cover most of the losses using its balance sheet through cooperation with Ripple.
Ripple Abandons Acquisition Deal
Initially, Ripple had announced its intention to acquire Fortress to expand its blockchain portfolio. However, Ripple CEO Brad Garlinghouse later revealed that the deal had been abandoned without disclosing specific details. Despite this, Ripple remains an investor in the crypto custodian.
Hot Take: Nevada-Based Crypto Custodian Fortress Trust Implements Reorganization Following Hack Attack
In the wake of a significant hack resulting in the loss of millions of dollars, Nevada-based crypto custodian Fortress Trust has taken proactive steps to reorganize its operations. The company has replaced its CEO and downsized its workforce in an effort to navigate the aftermath of the security breach.
While founder Scott Purcell has stepped down as CEO, he will continue to serve as a board member for Fortress’s parent company. The firm has also appointed a new CEO, Rich Hauschild, who brings experience from the crypto investment sector.
Fortress Trust suffered a hack attack in September 2023, leading to the loss of several cryptocurrencies. However, the firm was able to utilize its balance sheet and collaborate with Ripple to cover most of the damages.
Ripple’s initial plan to acquire Fortress was later abandoned, but the company remains an investor in the crypto custodian. This reorganization demonstrates Fortress Trust’s commitment to overcoming challenges and ensuring the security of its clients’ assets.
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