Ripple’s $112 Million Theft: Hacken’s Revelation Shakes Foundation of XRP’s Security

- Advertisement -

• Chris Larsen hack reveals connection of compromised wallets to “authorized XRP wallet,” suggesting possible vulnerabilities in Ripple.
• Ripple’s swift response includes address freeze and security flaw rebuttal by CEO Brad Garlinghouse.

The recent cyber attack that affected Ripple co-founder Chris Larsen, resulting in the theft of $112 million in XRP from his personal accounts, has raised new concerns about Ripple-related security. 

Research by Hacken, a leading cybersecurity firm, found that two of the compromised wallets were connected to what is referred to as an “authorized XRP wallet.” 

This discovery suggests that the incident could have more extensive consequences than initially considered, indicating a possible vulnerability or method of exploitation within the system directly associated with Ripple.

The analysis also revealed that these wallets were part of a transaction network involving exchange addresses, and one of these wallets had long-standing connections to XRP and had previously interacted with a wallet on Kraken in 2020. This raises questions about the security of transactions and relationships within the Ripple system.

Ripple’s reaction to this event has been prompt, with measures to stop the affected addresses and initiate an investigation with the authorities. Brad Garlinghouse, CEO of Ripple, categorically refuted that there was a security breach in the wallets managed by the company, dismissing the speculation as “irresponsible” and reinforcing confidence in the company’s security systems.

Nevertheless, this event and Hacken’s findings could affect the perception of security in Ripple and XRP. Despite Garlinghouse’s assurances that Ripple-traded wallets were not breached, the involvement of wallets related to the XRP system in the theft could raise doubts among investors about the safety of their XRP assets. 

XRP’s price movements following the attack reflect the market’s sensitivity to news of this type and highlight the need for robust and clear security measures in the cryptocurrency industry.