Crypto exchanges are on high alert due to an exploit linked to XRP issuer Ripple, as several platforms work together to monitor $112.5 million in stolen assets.
CEO of Binance Richard Teng revealed that late last month, his exchange halted accounts containing $4.2 million in Ripple’s XRP that unidentified hackers had stolen. Teng pledged that to support a complete recovery, his organization would keep collaborating with Ripple and other partners.
“We will continue to support Ripple in their investigations and their efforts to retrieve back the funds, including closely monitoring the majority of funds still in the exploiter’s external wallets in case they deposit to Binance.”
In addition, the CEO of Binance expressed gratitude to blockchain expert ZachXBT, who, as reported on January 31, was the first to identify the suspicious transactions.
Zach revealed the results of a 213 million XRP heist and the money that was subsequently distributed around exchangers. Not long after, Chris Larsen, Ripple’s executive chairman and co-founder, made it clear that the money was his.
Larsen acknowledged that his personal accounts had been accessed without authorization, but he did not reveal the details of the breach. The event has been peculiar because it broke from the standard hacking pattern, leveraging cryptocurrency mixers like Tornado Cash to obscure traces and draining assets as quickly as possible.
The hackers stole XRP for at least ten hours throughout the lengthy breach before depositing it on centralized exchanges like Binance. In other Ripple-related developments, the XRP issuer still faces legal action from the US Securities and Exchange Commission (SEC) for allegedly breaking federal laws through the sale of digital assets.
Judge Analisa Torres’ decision that retail and exchange sales did not qualify as an investment contract has left the status of institutional sales unclear. However, one portion of the SEC’s claims against Ripple and its officials were dropped.
