Ripple CTO Clarifies Some Misunderstanding In Hacken’s XRP Hack Analysis

• Hacken’s analysis on Larsen’s XRP hack has sparked confusion, but Ripple’s CTO has clarified some misunderstanding in the XRP hack analysis.
• Ripple CTO has clarified that the highlighted address in the analysis is simply Kraken’s sole XRP deposit address.

Ripple co-founder Chris Larsen’s $112.5 million XRP hack took a surprising turn yesterday when blockchain security firm Hacken released details of its investigation. 

However, closer examination reveals a crucial misunderstanding, as highlighted by DailyCoin in a previous article.

How Hacken Missed The Mark On Kraken And XRP

Hacken’s report identified two wallets linked to XRP’s authorized wallet as “playing key roles” in the hack. 

One of these wallets, belonging to the cryptocurrency exchange Kraken, sparked concern about potential involvement. 

See Also: Hacken Finds Links Of XRP Hacker To Ripple-Controlled Wallet

However, Ripple CTO David Schwartz quickly debunked this notion, clarifying that the highlighted address is simply Kraken’s sole XRP deposit address.

💡 Our investigation reveals a complex network of transactions, with some leading back to XRP

In this incident, two wallets connected to XRP’s authorized wallet played key roles

It’s early for conclusions, but the story is getting more interesting

— Hacken🇺🇦 (@hackenclub) February 7, 2024

The confusion arose from the nature of XRP transactions on Kraken. Unlike other exchanges, Kraken utilizes a single deposit address for all users. 

This means funds sent to the address “rLHzPsX6oXkzU2qL12kHCH8G8cnZv1rBJh” wouldn’t automatically implicate Kraken in the hack. 

Instead, each user’s unique “destination tag” routes the deposit to the correct account.

This detail, previously explained by DailyCoin, was overlooked by Hacken, leading to their erroneous conclusion. 

Thomas Silkjaer, Head of Analytics and Compliance at the XRP Ledger Foundation, further confirmed that Kraken’s single deposit address system has existed since 2014.

Ripple Hack Underscores Importance Of Due Diligence

While Hacken’s investigation initially raised eyebrows, the swift clarification from Ripple demonstrated the importance of thorough scrutiny and understanding specific platform protocols before concluding. 

The incident highlights the need for clear communication and collaboration between security firms, exchanges, and industry experts to avoid false alarms and ensure accurate investigations.

Though Chris Larsen has clarified the issue quickly, clear communication about XRP transactions on their platform could have avoided initial confusion.

This incident underscores the critical role of accurate information and collaboration in cryptocurrency investigations. 

Mistaken conclusions, like those initially reported by Hacken, can damage trust and create unnecessary panic.

#Binance #WRITE2EARN