Massive theft targets Ripple co-founder, raising security concerns
In a major security breach, hackers stole an astounding $112 million worth of XRP from the personal wallet of Ripple co-founder Chris Larsen. While the incident, so far being considered the largest of 2024, jolted the crypto community, cryptocurrency exchange Binance played an important role in recovering a portion of the stolen funds. Here are some key highlights of the recent developments in this issue:
- Hackers stole $112 million worth of XRP from Ripple co-founder Chris Larsen’s personal wallet.
- Binance froze $4.2 million of the stolen funds and is aiding the investigation.
- Ripple is leading the chase for the remaining $107.8 million.
- The hacker did not use mixers or decentralized exchanges, which raises questions about their approach.
- XRP market surprisingly remained stable despite the theft.
Binance Freezes $4.2 Million- Assists Investigation
Subsequent to the hack, Binance, the world’s leading cryptocurrency exchange, quickly identified and froze $4.2 million worth of stolen XRP connected to the exploit. This represents roughly 3.75% of the total haul but marks a significant development in recovering the stolen funds. Binance CEO Richard Teng stressed being committed to assisting with the ongoing investigation.
Ripple Takes over Investigation, Hacker Traced but Millions Missing
The responsibility for tracking the remaining $107.8 million has shifted to Ripple, the company behind XRP. They received vital data from the XRP Ledger Foundation to help in their pursuit. While initial reports incorrectly identified the attack as targeting Ripple itself, it was later clarified that only Larsen’s personal accounts were compromised.
Hacker’s Trail- No Mixers or Exchanges Used
Interestingly, the hacker behind the exploit did not attempt to conceal their identity by using cryptocurrency mixers or decentralized exchanges.
After stealing a massive 213 million XRP, valued at approximately $112.5 million at the time, the perpetrators went on a laundering spree. Their chosen method was spreading the stolen funds across no less than six different cryptocurrency exchanges. This network included established players like Gate.io, MEXC, Kraken, and Binance, alongside lesser-known names like HTX, OKX, and HitBTC.
This differs from recent trends where perpetrators often leverage such options to launder stolen funds. Security researcher ZachXBT played a key role in this regard in tracing the stolen funds and identifying the hacker’s activity.
Impact on XRP and Larsen- Growing Security Concerns
Despite the significant theft, the XRP market surprisingly remained relatively stable and even posted slight gains in the 24 hours following the incident. As for Larsen, while the hack undoubtedly represents a financial loss, he remains an XRP billionaire thanks to his remaining holdings.
The incident has once again highlighted the unique security challenges faced by high-profile figures in the cryptocurrency space. Their significant holdings make them an attractive target for hackers, thereby increasing the need for stronger security measures.
Unanswered Questions and Ongoing Investigation
While Binance’s intervention and Ripple’s efforts are encouraging, much remains unknown. The exact method used by the hacker, their identity, and the fate of the remaining $107.8 million are still shrouded in mystery. The investigation is ongoing, and further developments are expected over the coming days.
Celine Brooks is a renowned journalist and author specializing in cryptocurrency and blockchain technology. She holds a Master’s degree in Economics from Harvard University and is very passionate about Crypto. Celine regularly hosts webinars and workshops, sharing her insights and forecasts about the evolving digital currency landscape. She is also an active contributor to several leading financial and tech publications, where she breaks down complex crypto trends into understandable insights for everyday investors.