Ripple XRP Update : Was Ripple Really Hacked ?

Cryptocurrency markets experienced a momentary shakeup recently as Ripple’s XRP token faced a substantial dip of over 4%. Speculation ran rampant, fueled by reports suggesting a hack that drained $112.5 million from the network. Let’s explore the details surrounding the alleged hack and question whether Ripple was indeed compromised.

XRP On-Chain Investigation

A closer look at on-chain data from XRP Scan reveals intriguing details about the alleged hack. The compromised wallet, named “Ripple (50),” was activated on November 5, 2018, by another wallet known as “~FundingWallet1”. Interestingly, this funding wallet traces back to Chris Larsen’s account, activated on February 6, 2013, just a month after his primary account, “~chrislarsen,” came into existence.

Ripple’s Response

Chris Larsen, co-founder of Ripple, took to social media to address the situation, confirming unauthorized access to his personal XRP accounts. He assured the community that the issue was swiftly identified, prompting Ripple to notify exchanges to freeze the affected addresses. Law enforcement agencies were also promptly informed. Despite the substantial sum involved, Larsen emphasized that Ripple, as a company, was not impacted.

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

— Chris Larsen (@chrislarsensf) January 31, 2024

The Analyst’s Perspective On XRP

Blockchain analyst ZachXBT played a key role in bringing the alleged hack to light. According to his analysis, 213 million XRP tokens were seemingly stolen from Larsen’s personal wallet and subsequently laundered through major exchanges like Binance, OKX, and Kraken. The rapid distribution across multiple wallets added a layer of complexity to tracking and freezing the stolen funds.

Questions and Concerns

While Ripple maintains its resilience, questions arise regarding the timing of the breach discovery and notification. Some users on social media platforms express concerns about the lack of clarity in chris Larsen’s statement. The absence of details surrounding the timeline of the breach detection and notification raises eyebrows, leading to doubts about the reliability and security standards of Ripple.

Security Challenges in the Crypto Space

The alleged hack of a prominent figure in the crypto space follows a recent trend of security breaches in the industry. Just weeks into 2024, there have been notable incidents, including the $82 million hack of Orbit Chain. Ripple’s cyberattack stands out as the biggest cryptocurrency theft of the year 2024 and ranks as the twentieth largest theft in the history of recorded cryptocurrency breaches, according to Rekt. Such occurrences not only impact individuals but also raise broader concerns about the overall security of blockchain companies.

XRP Market Impact

Established in 2012, Ripple has evolved into a payments and enterprise infrastructure provider. Comprising a network, protocol, and decentralized public ledger called XRP Ledger, Ripple’s native token, XRP, holds a substantial market capitalization of $27.4 billion. However, the news of the alleged hack triggered a 4% drop in XRP’s value in early trading, as reported by CoinMarketCap.

Investors express anxiety despite Ripple’s assurance that its systems remain uncompromised. The market now demands answers regarding the oversight in flagging substantial transactions in real-time and the failure to protect a co-founder’s assets.

Conclusion

As the crypto communities grapples with the aftermath of the alleged hack, the question of whether Ripple was genuinely compromised remains unanswered. The incident sheds light on the broader challenges of security in the crypto space and prompts a closer examination of transparency and safeguards within blockchain companies. Until law enforcement investigations reveal more details, the market may continue to scrutinize XRP’s security measures and the implications of the incident on the cryptocurrency’s future.

The post Ripple XRP Update : Was Ripple Really Hacked ? appeared first on CoinGape.

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