Is Ripple’s Security Breach Bigger Than We Thought?
Highlights
- Ripple co-founder Chris Larsen experienced a cyber theft, losing $112 million in XRP from his accounts.
- An investigation by cybersecurity firm Hacken revealed connections between the compromised wallets and XRP’s authorized wallet.
- The investigation uncovered a complex network of transactions involving several exchange addresses, with Kraken specifically mentioned.
Ripple co-founder Chris Larsen fell victim to a cyber theft that saw $112 million worth of XRP siphoned from his accounts. This incident, initially perceived as a targeted attack on an individual’s digital assets, has taken a new turn following an investigation by Hacken, a leading cybersecurity firm. The probe uncovered connections between two compromised wallets and what is known as “XRP’s authorized wallet,” hinting at potentially more significant security implications for the cryptocurrency.
Investigation Unveils Complex Transaction Network
Hacken’s extensive analysis of the theft revealed an intricate web of transactions across different exchange addresses. In particular, the Kraken exchange was seen as a channel for money laundering.
🚨 @Ripple Case: Insights That Went Unnoticed
Driven by peculiar intricacies surrounding a recent XRP event, our team embarked on an in-depth inquiry
The key outcome of our investigation: two wallets, that took a central stage in the incident, are connected to XRP’s authorized… https://t.co/CQDU9ggkTF
— Hacken🇺🇦 (@hackenclub) February 7, 2024
A closer examination revealed a wallet seeped in historical ties to XRP, having interacted with the same Kraken wallet back in 2020. In addition, this wallet was also linked to another account that withdrew funds into a different CEX during the theft. The finding of two wallets linked to XRP’s authorized nest at this operation indicates a systemic break-in larger than first thought.
Ripple’s Response and Market Impact
After this security breach, Larsen confirmed that several of his personal XRP accounts were hacked. Prompt measures were taken to reduce the impacts, such as informing exchanges like Binance to lock out these addresses and involving law enforcement in the investigation. The armed robbery of about 213 million XRP has ignited serious anxiety in the cryptocurrency ecosystem.
Rumors that there was a security leak within their managed wallets for Ripple, where CEO Brad Garlinghouse gave a major counter-response. He dismissed such allegations as irresponsible, insisting that no wallets managed by Ripple were hacked and emphasizing the strength of their security apparatus. However, the incident caused a wave of changing market confidence, and XRP’s price subsequently fluctuated after its shock.
Read Also: Sam Bankman-Fried New Court Date Sheds Light on Representation Rift
- Traders Price In Two More Fed Rate Cuts This Year After Soft Inflation Data
- Crypto.com Joins Ripple in Banking License Bid Amid Industry Push for Market Structure Bill
- Breaking: U.S. CPI Comes In Lower Than Expectations, Bitcoin Rises
- Bitcoin Crash Incoming? Tom Lee Backs Peter Brandt’s 50% Decline Prediction Despite Strong ETF Inflows
- Breaking: JPMorgan Enables Institutions to Use Bitcoin, Ethereum as Collateral
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
- PUMP Price Prediction as Whales Accumulate 4.2B Tokens- Is 135% Rally Next?
- Dogecoin Price Crash Looms as Flag, Death Cross, Falling DOGE ETF Inflows Coincide
- Solana Price Prediction as Osprey’s S-1 Filing and Hong Kong’s ETF Launch Fuel Reversal Hopes- Is $250 Next?
- Ethereum Price Poised for Breakout as Wyckoff Re-Accumulation Meets BlackRock’s $110M Purchase
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
