In a major cybersecurity breach, 2024 witnessed the largest cryptocurrency theft, involving $112.5 million worth of XRP. The target of the attack was Ripple’s Executive Chairman, Chris Larsen. The incident led to a more than 5% drop in the value of Ripple’s XRP token.
What Happened?
The news surfaced when blockchain analyst ZachXBT reported the unauthorized access to Larsen’s “personal XRP accounts.” The funds were allegedly diverted and then the individual(s) involved attempted to obscure the origins of the XRP by transferring it through a minimum of six distinct exchanges.
Larsen quickly took to X (formerly Twitter) to address the situation, confirming that the stolen funds originated from his private holdings, not Ripple-managed wallets. He assured the public that the issue was promptly identified, exchanges were notified to freeze affected addresses, and law enforcement was already involved.
XRP Price Tumbled with the News
The network’s token, XRP, is now worth $27.4 billion, dropping about 4% after news of the hack. Ripple CEO Brad Garlinghouse lashed out at media reports of Ripple’s hack causing harm to its native token. He clarified that Ripple-managed wallets had no security breach, emphasizing that the hack exclusively targeted Larsen’s accounts.
Though Ripple’s CEO confirmed that the Ripple network was safe from the hack, it raises a big question about Larsen’s role. ZachXBT first noticed suspicious transactions, initially thinking it was Ripple. On January 30, eight transactions took place, ranging from 400,000 XRP ($200,000) to 69.7 million XRP.
ZachXBT pointed out some loopholes in XRP block explorers, erroneously linking Larsen’s compromised account to Ripple. Larsen’s key positions as Ripple co-founder and executive chairman were excluded from the community message, raising further suspicion.
Responding to the incident, some XRP holders also call for increased transparency, urging co-founders to disclose their crypto wallets and holdings. Podcast host Tony Edward suggested Larsen should distance himself from Ripple amidst growing concerns.
Are We Secure?
This significant security breach ranks as the most substantial cryptocurrency theft of 2024 and stands as the 20th largest in crypto history. The incident underscores the ongoing challenges and risks within the crypto space, prompting a call for increased security measures and transparency within the industry.
