Did Ripple Experience a Larger Security Breach Than Initially Reported?
A recent security breach involving Ripple co-founder Chris Larsen has taken a new twist, suggesting potential larger security implications for the cryptocurrency. Initially thought to be a targeted attack on Larsen’s personal accounts, an investigation by cybersecurity firm Hacken has uncovered connections between compromised wallets and “XRP’s authorized wallet,” indicating a more extensive breach than initially perceived.
Hacken’s investigation unveiled a complex network of transactions across various exchange addresses, with the Kraken exchange being identified as a channel for money laundering. Further analysis revealed a wallet with historical ties to XRP, interacting with the same Kraken wallet in 2020. This wallet was also linked to another account that withdrew funds into a different exchange during the theft. The discovery of these wallets linked to XRP’s authorized nest suggests a more significant systemic break-in.
In response to the breach, Larsen took immediate action to reduce the impact, such as notifying exchanges like Binance to lock out the compromised addresses and involving law enforcement in the investigation. However, the theft of approximately 213 million XRP has caused significant concern within the cryptocurrency community.
There were rumors of a security leak within Ripple’s managed wallets, but CEO Brad Garlinghouse dismissed these allegations, stating that no wallets managed by Ripple were hacked. He emphasized the strength of their security apparatus. Nevertheless, the incident has led to a shift in market confidence, leading to fluctuations in XRP’s price.