A breach targeted Larsen’s personal XRP accounts, leading to a substantial theft of funds. This “Ripple hack” topic sparked widespread discussions in the crypto community about the safety of digital assets and the measures needed to protect them. Was Ripple hacked?
Was Ripple Hacked?
Contrary to initial reports, Ripple Labs itself was not the victim of a $112 million XRP hack. Instead, the co-founder of Ripple, Chris Larsen, disclosed that the theft occurred from his personal XRP accounts. On-chain detective ZachXBT initially raised alarms about unusual outflows of approximately 213 million XRP from addresses linked to Ripple Labs. However, it was later clarified that these transactions were unauthorized accesses to Larsen’s personal accounts, not Ripple’s corporate wallets.
What Happened to Ripple Co-Founder?
Chris Larsen, Ripple’s co-founder, confirmed the security breach, stating that his personal XRP accounts were compromised. He revealed that they quickly identified the issue and alerted exchanges to freeze the affected addresses, with law enforcement getting involved promptly. The stolen funds were tracked as they were laundered through various crypto exchanges, including Gate, Binance, Kraken, OKX, HTX, HitBTC, and MEXC. Notably, the transactions occurred over a single day, from early to late Tuesday, and were not publicly disclosed until ZachXBT’s social media posts.
Yesterday, there was unauthorized access to a few of my personal XRP accounts (not @Ripple) – we were quickly able to catch the problem and notify exchanges to freeze the affected addresses. Law enforcement is already involved. https://t.co/T3HtKSlzLg
Ripple Hack: Is XRP Safe?
Following the incident, concerns arose regarding the safety of XRP. The hack, which targeted Larsen’s personal accounts rather than Ripple’s corporate assets, suggests that the broader XRP network remains secure. Ripple Labs confirmed that their systems were not impacted by this breach. However, the incident has led to calls for increased transparency from Ripple’s co-founders regarding their crypto wallets and XRP holdings.
This is an isolated incident, and Ripple wallets are secure / were never compromised. We’ve confirmed nearly all the affected funds were converted out of XRP.
We’re working with law enforcement and have been advised that a significant portion of funds have been frozen, and are…
How Did the Crypto Community React?
The news of the hack initially caused a dip in XRP’s value, with a more than 5% fall following the post on social media. However, the market has since shown signs of recovery. Ripple, established in 2012, aims to be a key player in payments and enterprise infrastructure, with its token, XRP, having a significant market capitalization. The hack, being the largest theft of cryptocurrency in 2024 so far, and one of the largest in history, has raised concerns in the crypto community.
What Are the Next Steps?
In the aftermath of the hack, there has been active cooperation with law enforcement and crypto exchanges to address the situation. Binance and Kraken, among other exchanges, have expressed their awareness and involvement in supporting the investigation. The incident has highlighted the importance of robust security measures for personal crypto accounts and the need for vigilance in the crypto space. As the investigation continues, the crypto community remains alert to the implications of such security breaches and their impact on the market and individual holders.