Investigation Reveals Potential Inside Job in $112.5 Million Ripple Wallet Hack

In a shocking turn of events, Ripple co-founder Chris Larsen's personal crypto wallets were compromised, leading to a staggering loss of 213 million XRP, valued at approximately $112.5 million. A recent report from blockchain analytics platform Hacken hints at the possibility of an inside job, casting a shadow over the security protocols of Ripple, the company behind the XRP ledger.

Larsen announced on Platform X that multiple personal wallets were hacked

On January 31, Larsen took to the public forums to announce that several of his personal wallets had been targeted by hackers, resulting in the loss of millions in XRP. This breach not only affected Larsen but also raised questions about the security measures protecting individual and corporate assets in the crypto world.

Investigation Findings by Hacken

Hacken's investigation, detailed in their February 7 report, sheds light on the sophisticated methods employed by the attacker. By splitting the stolen funds across eight different wallets and channeling them through various intermediate accounts, including one starting with "rHyqB," the hacker managed to obscure the trail. However, Hacken's diligent analysis revealed connections to a wallet account that may have been under Ripple's control, suggesting an unsettling link to the company itself.

Specific accounts linked to Ripple internally

Further investigation revealed two wallets connected to XRP's authorized wallet playing significant roles in the orchestration of the hack. One particular account, identified by its starting digits "rU1bPM4," was found to have historical transactions with Larsen, as well as direct involvement in the movement of stolen funds. This account, alongside its ties to a Kraken deposit address used by the attacker, pointed towards a convoluted network of transactions possibly implicating an insider within Ripple.

Binance froze $4.2 million worth of XRP

In a swift response to the unfolding situation, Binance CEO Richard Teng announced that the exchange had frozen $4.2 million worth of XRP related to the hack. This decisive action highlighted the crypto community's readiness to combat fraudulent activities, albeit after the fact.

Hacken is still investigating

The ramifications of this hack extend beyond the immediate financial loss, touching on issues of trust, security, and the vulnerability of digital assets. As Hacken continues its investigation, the crypto industry watches closely, anticipating the revelations that may further unravel the mystery surrounding the incident. Despite reaching out, Ripple's silence on the matter leaves many questions unanswered, fueling speculation and concern among investors and enthusiasts alike.

Conclusion: Safeguard your digital assets properly

The $112.5 million hack of Chris Larsen's Ripple wallets serves as a stark reminder of the ever-present risks in the digital asset space. With indications of an inside job, the incident underscores the critical need for stringent security measures and vigilance. As the investigation proceeds, the crypto community remains on edge, hoping for clarity and resolution to a situation that has once again highlighted the vulnerabilities inherent in the world of cryptocurrency.