- Chris Larsen, Ripple’s co-founder, faces a $112.5 million XRP theft from his personal wallet, hinting at potential internal links.
- Hacken’s investigation reveals complex fund movements and possible connections to Ripple’s authorized operations.
In a shocking development, Chris Larsen, the co-founder and chairman of Ripple, encountered a massive theft from his personal wallet, with $112.5 million in XRP stolen on January 31. This event has sparked concerns regarding security protocols at Ripple, one of the leading firms in the cryptocurrency space, with suspicions arising about potential insider involvement.
Investigation Uncovers Elaborate Scheme
Blockchain analytics platform Hacken released a report on February 7, uncovering the cyberattack’s intricate nature and its possible ties to Ripple. The investigation pointed to an elaborate scheme involving Larsen’s compromised wallets, where the attacker dispersed the stolen XRP across eight separate wallets, utilizing intermediary accounts and ultimately transferring some funds to a Binance deposit address.
A substantial portion of the stolen assets, approximately $70.9 million worth of XRP, was funneled into a single wallet, identified by the address “rHyqB.” This operation utilized a chain of intermediaries to launder the assets, with some of the funds making their way into a Binance account.
Ties to Ripple Under Scrutiny
A specific wallet, “rU1bPM4”, which had conducted transactions with Larsen in the past and was implicated in the laundering of the stolen funds, has drawn particular attention. Its transaction history suggests a connection to Ripple-approved operations, raising questions about the hack’s internal dynamics. Hacken’s report, however, cautions against premature conclusions regarding a Ripple employee’s direct involvement.
Further analysis of the “rU1bPM4” wallet revealed past transactions directed to a Kraken deposit address, including a notable $2 million transfer in 2020. This wallet’s historical ties to XRP transactions prior to the hack add another layer of complexity to the case.
The cyberattack on Larsen’s wallets, resulting in the unauthorized access and theft of 213 million XRP, underscores the critical need for heightened security measures. Binance CEO Richard Teng disclosed that the exchange had frozen $4.2 million of the stolen XRP, showcasing the crypto community’s collective efforts to mitigate the impact of such breaches.
This incident has cast a spotlight on Ripple, necessitating a thorough reevaluation of its security practices. The possibility of insider involvement has heightened concerns, emphasizing the importance of establishing robust and transparent procedures to safeguard against future threats. Despite the breach, Ripple’s XRP maintains a trading value of $0.51, experiencing a 24-hour increase of 1%.
