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Ripple suspected of involvement in $112 million hack

12 Feb, 2024 3 min read
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In late January, crypto detective ZachXBT reported on a potential hack of Ripple and the theft of 213 million XRP from the rJNL* address. The company's co-founder, Chris Larsen, revealed that personal wallets were hacked on 30 January. In his words, the attacks had nothing to do with the company or its functioning.

Image source: twitter.com/zachxbt

That would seem like the end of the story, as it's only due to Larsen's own carelessness. However, an investigation by Hacken, a company that audits the security of crypto projects, raises new questions.

In addition to the above-mentioned rJNL*, the ru1B* address has obvious signs of hacking, and it was also emptied in several goes on 30 January. Some funds were transferred from these addresses to rs1*. We'll clarify what's what: rJNL* and ru1B* are Larsen's wallets, and rs1* is the fraudster's wallet.

Image source: twitter.com/hackenclub

Next, the funds from rs1* go to crypto exchanges, with the most notable being Kraken with the address rLHz*. The fraudster probably uses it to cash out, according to analysts. But how can one explain that the same rLHz* address was previously (long before the hack) used by Larsen himself when he would directly send funds from ru1B*?

Image source: twitter.com/hackenclub

There could be several reasons for such a strange coincidence. For example, a company employee could've been behind the hack and used old financial channels for withdrawal. To avoid casting a shadow on the company's credibility, Larsen put the whole thing down to his own failures. 

The incident could've been used to divert attention away from a major XRP cash-out by Ripple's management (Larsen is the executive chairman). Alternatively, the hype may have been used to build up reserves at a discounted price, though that's unlikely. Unfortunately, there are more questions than answers.

Image source: StormGain Cryptocurrency Exchange

This week, a court granted the SEC's request for Ripple's financial statements for the past two years. The case is related to the regulator's intention to recognise XRP as a security. If it's revealed that tokens were sold to institutional investors, the company will be charged with violating securities law and will receive large fines and a possible ban on continuing operations. The coin could collapse.

Six months ago, we covered this issue, urging caution among potential investors. Since then, XRP's price has dropped 32%.


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