Behind Ripple’s Hack: The Shocking Truth of Insider Involvement in XRP Theft
Blockchain auditing firm Hacken has made a significant discovery regarding the recent exploit involving Ripple co-founder Chris Larsen’s personal wallets. This exploit, which resulted in the loss of $112.5 million worth of XRP, has raised suspicions of insider involvement.
Potential Compromise of Ripple Executive’s Personal Wallets
The report from Hacken, released on February 7, suggests that the hacker responsible for the $112.5 million exploit may have had ties to a wallet affiliated with Ripple, the company behind the XRP ledger. While Hacken does not outright accuse a Ripple employee of the attack, they assert that it’s too early to draw conclusions.
Role of XRP-Connected Wallets in the Attack
Hacken’s investigation highlights the involvement of two wallets associated with XRP’s authorized wallet in facilitating the attack. These wallets played crucial roles in the exploit, although their exact connection to the attacker remains unclear.
Details of the Attack and Fund Movement
On January 31, Chris Larsen reported the compromise of his personal wallets, resulting in the loss of 213 million XRP. Subsequently, Binance CEO Richard Teng revealed that his exchange had frozen $4.2 million worth of XRP stolen in the attack. Hacken’s researchers traced the movement of the stolen funds through multiple wallet accounts, indicating a deliberate effort to obfuscate the trail.
Analysis of Transaction Patterns
Hacken analyzed the transactions associated with each wallet involved in the exploit. Notably, they identified a wallet address that had previously sent a significant amount of XRP to Larsen. This same address also sent funds to one of the intermediate wallets used by the attacker, suggesting a potential link between the two parties.
Connection to Kraken Deposit Account
Further investigation revealed that the wallet in question had also deposited funds to a Kraken account in 2020. The attacker subsequently made deposits to the same Kraken account, indicating a possible connection between the two parties. Hacken speculates that the Kraken deposit account served as a conduit for the stolen funds.
Implications of Authorized Wallet Ties
The wallet associated with XRP, predating the incident, raises questions about its status as an “authorized wallet.” While the exact nature of this designation is unclear, its connection to the exploit adds complexity to the ongoing investigation.
Hacken’s findings shed light on the intricate nature of the $112.5 million exploit involving Chris Larsen’s personal wallets. The revelation of XRP-affiliated wallets linked to the attack underscores the need for continued scrutiny and investigation into the incident’s origins and perpetrators. As the investigation progresses, further insights may emerge regarding the motives and individuals behind the exploit.
