Swan Bitcoin's custodian now owned by Ripple — but execs have major beef
Since 2022, Swan Bitcoin CEO Cory Klippsten has been alleging criminal conduct by Ripple executives. Last week, Ripple announced its acquisition of Swan Bitcoin ’s major custodian , Fortress Trust. Whoops. A few months ago, Swan Bitcoin transitioned from Prime Trust to Fortress Trust and BitGo. Prime Trust is in bankruptcy proceedings. Fortress Trust also allegedly lost funds from its hot wallets in another security incident. Ripple is allegedly making harmed Fortress customers whole as part of its acquisition. Swan Bitcoin claims that although Fortress lost funds in a security incident, that incident did not involve Swan Bitcoin’s customers. It claims, “Swan client coins are in insured cold wallets at BitGo and did not move during the reported incident at Fortress. The coins are protected by video calls and physical access, and are not subject to any incidents at Fortress.” Moreover, Klippsten claims that Lloyd’s of London underwrote insurance of up to $250 million per bitco...