How Ripple is dealing with $112M XRP hack reports?
Ripple Labs witnessed a shocker last night when reports emerged it got hacked recently. On-chain detective ZachXBT claimed in a post that Ripple went through a hack that resulted in a loss of approx 213 million XRP. The value stands at around $112.5 million. This comes in when XRP is dealing with heavy selling pressure.
Ripple response to the hack
Brad Garlinghouse, Ripple CEO responded to the reports of a security breach involving Ripple’s co-founder Chris Larsen’s personal XRP accounts. He said termed the reports “irresponsible speculation and reporting.”
He stated, “NO Ripple-managed wallets were compromised. Full stop.” Ripple CEO suggested that the incident involving Larsen’s accounts was isolated and did not impact Ripple-managed wallets. However, Garlinghouse assured users of their security.
Chris Larsen mentioned that they are working with law enforcement. He added that a significant portion of funds have been frozen, and are pursuing the remainder aggressively.
The alleged hack reportedly occurred on January 30, and the stolen funds were said to be quickly laundered through exchanges. However, some users are skeptical about laundering such significant funds through centralized exchanges (CEX).
What’s the matter?
ZachXBT pointed out that there are various ways to off-ramp funds from Ripple, including Bitcoin, Ethereum, TRON, XMR, and more. Some consider the number of transactions in a short period towards exchanges as evidence of the alleged hack.
The stolen funds were allegedly laundered through major crypto exchanges, including MEXC, Gate, Binance, Kraken, OKX, HTX, HitBTC, and more.
ZachXBT provided theft addresses related to the alleged hack, pointing to the source address as rJNLz3A1qPKfWCtJLPhmMZAfBkutC2Qojm. The listed theft addresses are:
XRP, Ripple’s native crypto, is already on a downtrend as its price has dropped by over 20% in the last 30 days. The alleged hack reports left a good dent on XRP price as it dropped by around 3% over the last 24 hours.
XRP is trading at an average price of $0.49, at the press time. Its 24 hour trading price is down by 27% to stand at $1.3 billion. However, it is still the sixth largest crypto with a market cap of $26.8 billion. The road ahead seems to be difficult for Ripple from here.