Ripple Hack Exposes Millions in XRP Stolen: Insider Job Suspected?

Published by

Qadir AK

February 9, 2024

Hold onto your hats, as we dive into the recent crypto storm that hit Ripple. On January 31st, a whopping 213 million XRP was swiped from co-founder Chris Larsen’s wallets, setting off alarms across the crypto community.

What’s crazy is that now cybersecurity firm Hacken is shining a light on the nitty-gritty of the breach. Not only did they uncover the theft, but they also hint at a possible inside job, putting Ripple’s security measures under the microscope.

Secrets Out in the Open!

Hacken’s investigation has revealed a complex laundering scheme involving multiple wallets, with a notable portion of stolen funds channelled through a single wallet labeled “rHyqB.”

Connections between “rHyqB” and another wallet, “rU1bPM4” were revealed with prior transactions with Larsen and Ripple, including a substantial $64.6 million transfer.

Hacken’s expert, Dmytro Yasmanovych’s analysis, has raised suspicion about potential insider involvement. The community is seemingly concerned about internal security safeguards at Ripple. Should investors be concerned?

As you can see from this, the compromised wallet marked in red shows the previous connection of transactions between the two wallets “rHyqB” and “rU1bPM4” with Laren and Ripple.

Ripple’s Response

In the aftermath, Larsen took swift action, informing exchanges like Binance to block compromised addresses and involving law enforcement. However, the market is shaken up.

Ripple’s CEO, Brad Garlinghouse, also stepped in to deny any security leaks in Ripple’s managed wallets, aiming to ease concerns. Despite his efforts, the incident leaves a mark on market confidence, causing XRP’s value to sway.

The Outlook, Though? Still Positive.

Amidst the security breach and ongoing legal proceedings with the SEC, renowned crypto analyst Ben Armstrong has offered optimistic predictions for XRP’s future.

Armstrong emphasized the importance of XRP adoption in America, highlighting the potential benefits for investors and financial institutions. Despite acknowledging XRP’s historical volatility, Armstrong predicted a milestone price of $1 for XRP by February 29th, with further gains anticipated thereafter.

This Might Interest You: Ripple Vs. SEC Lawsuit Could End In 7 Possible Ways

Ripple is all over the news. From the security breach of co-founder Larsen, SEC’s motion to compel given the Court’s nod, and bullish predictions of XRP, Ripple seems to be tangled up in all sorts of complexities and uncertainties.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.