- Hacken has released details of its investigation into the XRP hack, but it has made a mistake.
- The confusion has arisen from a misunderstanding of the exchange protocol.
- Ripple CTO has clarified that the highlighted address is simply Kraken’s sole XRP deposit address.
Ripple co-founder Chris Larsen’s $112.5 million XRP hack took a surprising turn yesterday when blockchain security firm Hacken released details of its investigation. However, closer examination reveals a crucial misunderstanding, as highlighted by DailyCoin in a previous article.
How Hacken Missed the Mark on Kraken and XRP
Hacken’s report identified two wallets linked to XRP’s authorized wallet as “playing key roles” in the hack. One of these wallets, belonging to the cryptocurrency exchange Kraken, sparked concern about potential involvement. However, Ripple CTO David Schwartz quickly debunked this notion, clarifying that the highlighted address is simply Kraken’s sole XRP deposit address.
The confusion arose from the nature of XRP transactions on Kraken. Unlike other exchanges, Kraken utilizes a single deposit address for all users. This means funds sent to the address “rLHzPsX6oXkzU2qL12kHCH8G8cnZv1rBJh” wouldn’t automatically implicate Kraken in the hack. Instead, each user’s unique “destination tag” routes the deposit to the correct account.
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This detail, previously explained by DailyCoin, was overlooked by Hacken, leading to their erroneous conclusion. Thomas Silkjaer, Head of Analytics and Compliance at the XRP Ledger Foundation, further confirmed that Kraken’s single deposit address system has existed since 2014.
Ripple Hack Underscores Importance of Due Diligence
While Hacken’s investigation initially raised eyebrows, the swift clarification from Ripple demonstrated the importance of thorough scrutiny and understanding specific platform protocols before concluding.
The incident highlights the need for clear communication and collaboration between security firms, exchanges, and industry experts to avoid false alarms and ensure accurate investigations.
On the Flipside
- Though they clarified the issue quickly, clear communication about XRP transactions on their platform could have avoided initial confusion.
Why This Matters
This incident underscores the critical role of accurate information and collaboration in cryptocurrency investigations. Mistaken conclusions, like those initially reported by Hacken, can damage trust and create unnecessary panic.
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Still confused about the Ripple hack and what Hacken thought its connection to Ripple itself was? Read our latest article for a deeper dive:
Ripple’s Co-founder XRP Hack Shows Internal Links to Ripple
Wondering how the Ripple vs. SEC lawsuit might play out? Our latest article explores the potential impact of a recent court order:
Ripple vs. SEC: Could an Appeal Push the Lawsuit Into 2026?
