In a startling revelation, Chris Larsen, the co-founder and executive chairman of Ripple, announced on January 31 that his accounts had been hacked, resulting in a significant loss of XRP tokens worth approximately $112.5 million at the time of the incident.
Initially mistaken for a breach involving the company, the unauthorized access to Larsen’s personal XRP accounts has prompted swift action from him and law enforcement agencies.
The breach came to light when crypto analyst ZachXBT reported the incident, raising concerns that Ripple, the blockchain-based payment platform, might have been compromised.
However, Larsen clarified that the breach solely pertained to his holdings and not the company’s. In a statement, Larsen said,
“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.”
Although Larsen did not confirm the exact amount of XRP stolen in the breach, ZachXBT estimates that approximately 213 million XRP tokens were siphoned. At the time of the incident, this amounted to $112.5 million in losses.
What makes this situation even more concerning is the subsequent attempt by the perpetrator(s) to launder the stolen XRP. Reports indicate that the hacker(s) sought to obfuscate the origins of the funds by routing them through at least six different cryptocurrency exchanges. This elaborate money laundering scheme aimed to make tracking and recovery efforts more challenging.
Law enforcement takes action
Chris Larsen’s quick response and cooperation with law enforcement agencies have played a crucial role in containing the situation. As he mentioned in his statement, affected addresses were swiftly identified and brought to the attention of exchanges, leading to the freezing of associated accounts. While it remains uncertain whether the stolen funds remain within exchange custody, law enforcement’s intervention suggests that every effort is made to apprehend the perpetrator(s) and recover the stolen assets.
Ripple, a prominent player in the cryptocurrency and blockchain industry, has been at the forefront of innovative financial solutions using its native XRP token. The incident involving Chris Larsen’s accounts has not directly affected the company’s operations. Still, it underscores the need for increased security measures in the ever-evolving world of digital assets.
