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Larsen's Accounts Compromised: How $112.5 Million in XRP Was Stolen and Laundered

January 31 at 16:23
News, Security

Join us as we dissect the recent $112.5 million heist on Larsen's accounts, uncovering the story, the responses from industry leaders, and the implications for blockchain security.

Ripple, a leading name in digital payment systems, was recently linked to a major personal account security breach. In what is being described as one of the most significant thefts in recent times, approximately $112.5 million, or 213 million XRP, Ripple's native cryptocurrency, was illicitly siphoned off from the personal accounts of Chris Larsen, the co-founder of Ripple.

TL;DR:

  • Hack Incident: Ripple's co-founder Chris Larsen's personal XRP accounts were hacked, resulting in the theft of about 213 million XRP tokens, valued at approximately $112.5 million.
  • Laundering and Response: The stolen funds were quickly laundered through several crypto exchanges like Binance and Kraken. Larsen alerted the exchanges to freeze the affected addresses and involved law enforcement.
  • Market Impact: Following the news of the hack, Ripple's XRP token experienced a drop in value, declining by about 5%, recovering shortly after.
  • Security Implications: This incident highlights security vulnerabilities mainly regarding personal accounts, as the network wasn't directly affected.

The first to notice the hack was an on-chain investigator ZachXBT, who promptly noticed an unusual activity in XRP movement, regarding Larsen's private accounts. He also provided information about the subsequent laundering (including specific addresses) and posted this report on X.

 

Larsen, taking immediate action, confirmed the hack on social media and alerted the authorities and relevant cryptocurrency exchanges. He requested the freezing of the affected addresses to prevent further unauthorized transactions. This swift response was crucial in mitigating the impact of the breach.

The stolen XRP funds were laundered through various cryptocurrency exchanges, including major platforms like Binance and Kraken. This laundering process underscores the sophisticated tactics employed by cybercriminals in the digital currency space. In response to the incident, some exchanges have actively supported the investigation and taken steps to freeze the hacked funds.

Ripple, which has been operational since 2012, emphasizes payments and enterprise infrastructure through its network, protocol, and the decentralized public ledger known as the XRP Ledger. The XRP token, experienced a drop in market value following the news of the hack, with a reported decline of about 5%, recovering back in a matter of hours.

 


Source: TradingView

The incident has sparked a broader conversation within the cryptocurrency community regarding security and transparency. Some XRP holders are urging for more disclosure of crypto wallets and holdings by the company's co-founders to enhance transparency. Additionally, this event has highlighted the vulnerabilities in digital asset storage and transfer, emphasizing the need for robust security measures and vigilant monitoring by both individuals and organizations in the crypto space.

Disclaimer: The content of this piece reflects the writer's opinion. This article is not intended to provide financial advice and is meant solely for entertainment and educational purposes. Investing in cryptocurrency involves significant risk. Capital is at risk, and returns are not guaranteed. Always conduct your own research.

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