The discovery of links to XRP’s authorized wallet in hacked Ripple co-founders’ accounts raises broader security concerns.
The accounts of Ripple co-founder Chris Larsen were compromised in a cyber theft that resulted in the loss of XRP valued at $112 million. An investigation by the industry leader in cybersecurity, Hacken, has altered the initial perception of this incident as a targeted assault on an individual’s digital assets.
The investigation revealed correlations between two compromised wallets and “XRP’s authorized wallet,” which may have further substantial ramifications for the cryptocurrency’s security.
A comprehensive examination of the larceny by Hacken unveiled a complex network of transactions spanning multiple exchange addresses. The Kraken exchange, in particular, was perceived as a conduit for laundering funds.
🚨 @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, 2024A more meticulous analysis unveiled a wallet tainted with historical connections to XRP, as it had engaged in transactions with the identical Kraken wallet in 2020.
Additionally, funds were withdrawn from a different CEX account through a connection in this wallet that was also compromised during the theft. The discovery of two wallets associated with the authorized accumulation of XRP during this operation suggests a more extensive systemic breach than initially anticipated.
Ripple’s Response And Market Impact
Larsen confirmed after the security lapse that several of his personal XRP accounts had been compromised. To mitigate the effects, expeditious actions were undertaken, including notifying exchanges such as Binance to restrict access to the compromised addresses and engaging law enforcement in the inquiry. The armed theft of approximately 213 million XRP has caused the cryptocurrency ecosystem to experience extreme anxiety.
Amid rumors that Ripple-managed wallets had experienced a security breach, CEO Brad Garlinghouse issued a significant denial. He refuted these accusations as negligent, maintaining that none of the purses under Ripple’s management had been compromised and highlighting the robustness of their security infrastructure.
However, due to the surge of fluctuating market confidence sparked by the incident, the price of XRP fluctuated in the aftermath of the shock.
