Last week, Ripple co-founder Chris Larsen suffered a hack resulting in the theft of $112 million worth of XRP from several of his personal accounts.
The incident initially appeared to be a straightforward case of cyber theft targeting an individual’s digital assets.
However, an investigation by Hacken, a renowned cybersecurity firm, has unearthed that two of the compromised wallets were linked to what is described as “XRP’s authorized wallet.”
This discovery suggests that the breach may have broader implications than initially believed.
The investigation by Hacken into the theft of XRP funds revealed a complex network involving transactions across various exchange addresses.
Among the exchanges, Kraken was specifically mentioned as a channel used to funnel out the funds.
Further analysis identified a wallet with longstanding ties to XRP, which had previous interactions with the same Kraken wallet in 2020. This wallet was also connected to another account that transferred funds to a different cryptocurrency exchange (CEX) as part of this incident.
The investigation pointed out that two wallets, both linked to XRP’s authorized wallet, were crucial in this scheme.
Last week, Larsen confirmed a security breach where several of his personal XRP accounts were hacked. The incident was quickly addressed, with exchanges being notified to freeze the affected addresses and law enforcement being involved in the investigation. The hack led to the theft of about 213 million XRP
As reported by U.Today, Ripple CEO Brad Garlinghouse strongly rebutted claims suggesting a security lapse within the company’s managed wallets.
Labeling the speculation as “irresponsible,” Garlinghouse made it clear that no Ripple-managed wallets were compromised, emphasizing the integrity of the company’s security systems.
This statement came amidst a backdrop of fluctuating market confidence, with XRP’s price taking a hit in the aftermath of the hack.