Key Takeaways
- Multiple personal XRP accounts belonging to Ripple’s Chris Larsen were compromised in a hacking incident.
- The breach has cast a shadow of doubt over the company’s security practices and has led to a 5% drop in the value of XRP.
- ZachXBT was the first to uncover the unauthorized access and transfer of XRP tokens.
Ripple, a prominent player in the crypto payment sector, witnessed a 5% drop in the value of its XRP token on Wednesday. This market reaction was spurred by concerns stemming from a reported security breach, potentially involving $112.5 million.
Blockchain expert ZachXBT was the first to bring this incident to light, uncovering the unauthorized access and transfer of 213 million XRP tokens.
Exec’s XRP Accounts Hacked, Company Wallets Unaffected
Recently, Ripple’s executive chairman and co-founder, Chris Larsen, disclosed that multiple personal XRP accounts belonging to him were compromised in a hacking incident on January 31.
Following the security breach, Larsen emphasized that the hack was an “isolated incident,” assuring that Ripple’s wallets remain secure and unaffected by the intrusion.
Echoing this sentiment, Ripple CEO Brad Garlinghouse also commented, reinforcing the message of security and integrity within the company’s systems.
Thomas Silkjær, who leads Analytics and Compliance at the XRP Ledger Foundation, shed more light on the situation. He recounted that the crypto exchange WhiteBit raised an alarm about unusual deposit activities on January 30. Following this alert, Silkjær’s team promptly notified Larsen about the potential breach and commenced collaborative efforts in the investigative process.
Stolen XRP Valued at $112 Million in High-Profile Crypto Heist
ZachXBT also highlighted that the pilfered funds have been channeled through multiple exchanges, including MEXC, Gate, Binance, Kraken, OKX, HTX, and HitBTC, indicating a sophisticated laundering operation.
The investigation led by ZachXBT suggests a breach in Larsen’s private keys, although specific details about the breach’s nature remain undisclosed.
Initially, ZachXBT insinuated that Ripple itself had been the target of the attack. However, after Larsen publicly clarified the situation, ZachXBT made a pointed remark, sarcastically downplaying the distinction between Larsen’s personal holdings and Ripple’s corporate assets, implying a blurred line between the two entities.
This insinuation echoes past scrutiny from the U.S. Securities and Exchange Commission, which had previously accused Larsen and Ripple CEO Brad Garlinghouse of possessing a substantial amount of XRP early on and partaking in unauthorized personal token sales alongside Ripple’s corporate transactions.
However, in a significant turn of events in 2023, the SEC withdrew all allegations against the executives, and Ripple was exonerated from related charges, marking a pivotal moment in the company’s legal journey.
XRP’s Market Value Dips 5% Amid Security Concerns
In the aftermath of the recent security breach, XRP experienced a notable 5% decrease in its market value within a 24-hour span, with its price falling from 0.5081 to 0.4955.
The cryptocurrency has since adjusted slightly, currently trading at 0.494. Coinmarketcap has documented this downturn, noting a parallel 5% shrinkage in market capitalization, now standing at $27,437,885,373.
Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear.
Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3.
An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.
