Is Ripple's Security Breach Bigger Than We Thought?

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.

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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